Falling house prices and drop in Victorian rental numbers could mark rise of owner-occupiers
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Buyers looking to move in could benefit from 6.5% drop in market since March 2022 as state claims largest share of first home buyer finance. Owner-occupier buyers in Victoria could benefit from an investor sell-off that has been gathering momentum alongside falling house prices, an expert says.
Data from Victoria’s Department of Families, Fairness and Housing revealed the number of rentals fell by almost 25,000 – or 3.6% – across the state over a year. It came as CoreLogic recorded a fall in Australian property prices for the first time in almost two years. And, despite Victoria’s shrinking rental market, rental prices in Melbourne have also fallen over the past six months, the research body says.
Sign up for Guardian Australia’s breaking news email. Eliza Owen, CoreLogic’s head of research, said rental properties being bought by owner-occupiers could be contributing to the reduction in rentals, but added there was limited regular data available on the level of home ownership.
She pointed to September figures from the Australian Bureau of Statistics which showed Victoria accounted for the largest share of first home buyer finance. “It could point to owner occupiers being more active in this market than investors,” she said.
“Melbourne is a good buyer’s market for those that are interested in owning their own home. Values are down about 6.5% from a peak in March of 2022. It might not sound like much, but it’s about a $53,000 drop in the median dwelling value across Melbourne since that peak.”.
