Melbourne housing glut driving prices down
The Melbourne housing market is sliding backwards due to a housing oversupply which is causing house prices to fall.
Recent data from SQM Research has revealed that house prices in Melbourne have continued to drop and there are no signs of when the trend will stop.
Louis Christopher, SQM Research managing director, commented: "This is not a sign of a healthy market, and there is no real recover occurring. Housing financial approvals are still quite weak and we don't see the trend changing."
With more than 55,000 unsold dwellings in Melbourne city, Victorians looking at buying land or property in the area may want to consider purchasing rural property as an alternative or consider investment in another state.
The record number of unsold homes in Melbourne for June is the highest out of Australia's capital cities.
At a city auction last weekend (July 7), the weakening housing trend continued with just a 55 per cent clearance rate achieved and under 350 auctions.
Inadequate infrastructure and transport services, mortgage pressure and restrained employment opportunities are thought to be some of the factors influencing Melbourne's ailing housing market.