The Melbourne housing market has continued to stay strong and grow even during the pandemic. A new lockdown that started in July did slow the growth a bit, but Melbourne remains among the country’s five fastest growing housing markets. The first few months of 2021 saw a 4 percent increase in home values with the fall season boasting over 13 percent growth year over year.
Currently, Melbourne’s median single-family home prices are around $363,000 with multi-family homes getting to be over $950,000 depending on the location. With prices still rising and interest rates at historic lows, Melbourne is still a hot spot for property investment as well as traditional homebuyers.
Local Insights on Melbourne’s Housing Market
A majority of the major financial institutions in the United States are reporting heavy interest in new home loans thanks to the availability of insanely low fixed interest rates. The lower rates help offset any increase in monthly mortgage payments due to the higher prices. Both new homebuyers and experienced homeowners can take advantage of these rates and find their dream home even in a hot market.
Melbourne’s ability to provide the amenities of any typical metro area but at lower prices is why popularity for the area has refused to diminish. Comparing Melbourne to other metros on the east and west coastlines will put the price range in perspective, showcasing how affordable Melbourne is despite pandemic price increases. Savings that often total over $100,000 attracts families that are in search of a home that doesn’t cause them to lose access to the offerings of the big city.
Melbourne Pricing Beats Out Other Metro Areas
Nearly half of all Melbourne listings have sold for less than the initial listing price. With inventory struggling to keep up, homeowners can demand a higher premium for their property but will often settle for less when the right buyer shows up. Remote workers are beginning to make up a sizable portion of Melbourne’s newest residents. These young professionals are bringing new life into the downtown area that was already full of music, art and food from the locals.
Among these new virtual workers is a smaller group of people known as digital nomads. Using platforms such as Airbnb and VRBO, these traveling tenants will stay in one area for as little as two weeks or as long as six months depending on their preferences. Unlike traditional rental properties, owners of property on Airbnb can adjust rates between each visit and require their own approval for every guest. Hosting a rental property on these new platforms is a much more lucrative and flexible option compared to the standard long-term lease agreements.
To top it all off, the droves of new workers are able to enjoy Florida’s lack of state income tax. The market for housing in Melbourne is still hot and on the rise, but fixed-rate mortgage interest makes it a fair tradeoff. Families and investors alike should see what Melbourne has to offer before interest rates start rising again. For all of your Melbourne home buying needs, the David Curri team is standing by to help. Your dream home in the idyllic Space Coast could be a message or phone call away so don’t hesitate to reach out.