2016 has certainly been an interesting year with strong price growth in Melbourne, often a shortage of stock, and high auction clearance rates.
Most predictions are for little change in 2017, because people, from interstate and overseas, love to settle in Melbourne, now an international city. With a net increase of 92,000 people per annum, and very low interest rates, even if edging up, there is continuous pressure for more accommodation.
Pick your own prediction! NAB says little growth, SQM research give 3 scenarios, with Scenario 3 ( see table) predicting a middle course of 8% -13% capital growth, on average. Given that Melbourne houses are expected to have increased 11% in Calendar 2016. it is my favourite.
I work for buyers, so a shift away from a sellers market would be welcome change and would improve affordability for new market entrants.