‘Summer smorgasbord’: Suburbs where homes have gotten even cheaper for first-time buyers

Victorian first-home buyers have their best chance to buy a property in years this summer, as almost 17,000 residences under $600k are on the market. See the suburbs to look.

Nathan Mawby

@mrmawby

3 min read

December 1, 2024 - 6:00AM

Could mortgage holders see relief any time soon?

Victorian first-home buyers are poised for a summer “smorgasbord” as investors offload affordable homes and give market entrants their best chance to buy in years.

Realestate.com.au property search data shows almost 17,000 residences are advertised across the state in price brackets around or below $600,000, where most first timers focus.

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The vast numbers of affordable homes for sale represent a substantial chunk of the state’s overall listings, which during spring reached their highest levels in Melbourne since 2012, according to PropTrack data.

Elevated listings, as well as high interest rates, have values flat or falling in many of the city’s most-affordable suburbs.

Melton’s $470,000 typical house price hasn’t changed since 2023, and Craigieburn’s $409,000 median unit price is down from $420,00 a year ago.

With the auction clearance rate hovering around 55 per cent for most of spring — bringing the city into summer with its equal lowest sales success rate since 2019 — a growing number of home sellers are also being forced to negotiate if they want to lock in a deal before Christmas.

<a href="https://www.realestate.com.au/property-house-vic-bacchus+marsh-145659380">15 Wilson Place, Bacchus Marsh</a> is on the market with a $550,000-$600,000 asking price.

15 Wilson Place, Bacchus Marsh is on the market with a $550,000-$600,000 asking price.

In Craigieburn, Ray White agent Trish Orrico said close to 80 per cent of homes hitting the market were being listed by investors selling up — and first-home buyers were a dominant force.

“This has probably been the busiest spring market I have ever seen, in terms of the amount for sale — there is a smorgasbord out there,” Ms Orrico said.

“And I reckon it is one of the best times to buy a first home.”

<a href="https://www.realestate.com.au/property-unit-vic-craigieburn-146275252">7/7 Walters St, Craigieburn </a>is on the market right now. The suburb’s unit price is down $11k from a year ago.

7/7 Walters St, Craigieburn is on the market right now. The suburb’s unit price is down $11k from a year ago.

Latest Australian Bureau of Statistics figures show more than 40 per cent of Victorian owner occupier home loans in September went to first-home buyers, the highest figure in the nation, at the same time as the state’s investor lending is near the lowest in the country.

PropTrack economist Angus Moore said with a high number of homes on the market at present, first-home buyers who had managed to save a deposit were well placed despite ongoing affordability challenges.

“They have been surprisingly strong in the environment in which affordability is as constrained as it is,” Mr Moore said.

“But prices in Melbourne and in regional Victoria are off 1.3 per cent in the past year, and while that’s not huge, that will help some first-home buyers.”

Loan Market broker Jacob Decru said while at the start of the year his firm had regularly needed to extend first-home buyer home loan pre-approvals, today many were locking in a purchase just 30 days after getting finance ticked off.

“I have never seen that happen before,” Mr Decru said.

<a href="https://www.realestate.com.au/property-house-vic-thornhill+park-145606228">29 Stockport Cres, Thornhill Park</a> - where home prices dipped 1.5% - is on the market for $565k-$585k.

29 Stockport Cres, Thornhill Park - where home prices dipped 1.5% - is on the market for $565k-$585k.

“First-home buyers are believing that interest rates will go down next year, and they are getting in with a view that house prices will go up in response.”

Property Home Base founding director and buyers agent Julie DeBondt-Barker said inquiries from first-home buyers had risen significantly over the past two to three months.

“Many are eager to secure pre-approval to make purchases before Christmas, it’s something that happens annually, but there’s a marked increase this year,” Ms DeBondt-Barker said.

However she warned an impending interest rate cut next year would likely push prices up, putting a time limit on buyers.

Mortgage Choice broker David Thurmond said many first-home buyers were now “lowering their sites” to more affordable homes in response to the conditions, rather than waiting for an interest-rate cut as many had been.

Adarsh Manuel and wife April Teepa just bought their first home this month, and are looking forward to raising their son Aiden, 15 months. Picture: Jake Nowakowski

Mr Thurmond added that others were being surprised to find they could buy a home after meeting with a broker.

He noted that a couple with just $30,000 in the bank and a combined income a bit over $100,000 could potentially buy a home for as much as $500,000.