Over supply cut house prices in Melbourne
Australian property experts are concerned about the state of the Melbourne real estate market as house prices continue to decline.
According to information supplied by SQM Research high levels of unsold stock are driving prices down. Records show the amount of residential dwellings in the city currently on the market is in excess of 55,000 including apartments as well as houses.
The number of new listings increased by more than 6 per cent last month and was significantly higher than the same time a year ago.
One reason for so many unsold homes is the amount of home sellers reluctant to negotiate on price – experts suggest they withdraw until they are prepared to adjust their sale price accordingly.
Evidence suggests that some areas of the Melbourne real estate sector are performing better than others - for instance in the upper price bracket homes are holding their values well but on the whole the current trend of falling prices looks set to continue for some time yet.