Melbourne Housing Market Forecast 2024: Will it Crash? – Norada Real Estate Investments

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Melbourne, FL, is sizzling with real estate potential! This thriving market boasts speedy sales, competitive bidding, and desirable single-family homes with pools taking center stage. We will discuss the Melbourne housing market trends and the anticipated continued strength in the coming year.

How is the Melbourne housing market doing currently?

Market Trends:

  • Median sale price: According to Redfin, Melbourne’s median sale price sits at $334K, up 9.3% year-over-year, indicating steady growth.
  • Homes on the market: Homes typically sell in around 49 days, with 94 sold in December 2023, reflecting a slightly faster pace compared to last year.
  • Competitive market: Melbourne’s housing market is somewhat competitive, with homes receiving 2 offers on average.

Factors Driving the Market:

  • Migration: Melbourne is experiencing an influx of new residents, with 41% of homebuyers searching to move out, while 59% look to stay within the metropolitan area. Top feeder cities include Miami, Orlando, and New York.
  • Affordability: Compared to the national median sale price, Melbourne offers relative affordability, attracting budget-conscious buyers.
  • Climate: While Florida’s warm weather is a draw for many, Melbourne faces potential risks from hurricanes, floods, and wildfires.

Living in Melbourne:

  • Schools: Melbourne offers a variety of public schools, some with excellent ratings. However, enrollment eligibility should be directly confirmed with the school.
  • Transportation: While Melbourne is car-dependent, it offers some bike-friendly areas and a limited public transit system.
  • Natural beauty: Melbourne’s proximity to beaches and natural attractions provides ample opportunities for outdoor recreation.

Melbourne Housing Market Forecast 2024

According to Zillow, a prominent real estate data source, the average home value in Melbourne stands at $365,967, reflecting a 1.9% increase over the past year. Additionally, homes in Melbourne typically go pending in approximately 32 days, emphasizing the brisk pace of the local real estate scene. This data is current as of January 31, 2024.


Buy/sell, rent/lease residential &
commercials real estate properties.

Understanding Key Housing Metrics

For Sale Inventory (January 31, 2024)

The for-sale inventory in Melbourne as of January 31, 2024 stands at 608. This metric serves as a key indicator of the availability of properties in the market, influencing buyer choices and overall market dynamics.

New Listings (January 31, 2024)

January 31, 2024 saw 188 new listings in Melbourne. This influx of new properties can impact market competitiveness and provide opportunities for both buyers and sellers to explore fresh options.

Median Sale to List Ratio (December 31, 2023)

As of December 31, 2023, the median sale to list ratio in Melbourne is 0.976. This ratio is a critical metric reflecting the correlation between listing prices and actual sale prices, providing insights into negotiation trends.

Median Sale Price (December 31, 2023)

The median sale price for homes in Melbourne, reported on December 31, 2023, is $335,667. This figure serves as a benchmark for property values, guiding both buyers and sellers in making informed decisions.

Median List Price (January 31, 2024)

As of January 31, 2024, the median list price for homes in Melbourne is $389,250. This metric sets the stage for potential transactions, influencing buyer expectations and seller strategies.

Percent of Sales Over List Price (December 31, 2023)

On December 31, 2023, 9.7% of sales in Melbourne were over the list price. Understanding this percentage provides valuable insights into market competitiveness and the prevalence of bidding wars.

Percent of Sales Under List Price (December 31, 2023)

Conversely, on December 31, 2023, 73.8% of sales in Melbourne were under the list price. This statistic indicates the prevalence of negotiated deals and opportunities for buyers to secure properties below the initial listing price.

Is Melbourne a Buyer’s or Seller’s Housing Market?

The average home value increase of 1.9% over the past year indicates a market that is leaning towards sellers. Additionally, the median list price of $389,250 (as of January 31, 2024) suggests a level of confidence among sellers. However, the percentage of sales under list price at 73.8% (December 31, 2023) signals negotiation opportunities for buyers. In summary, while there are seller-friendly aspects, the market also presents opportunities for buyers to negotiate favorable deals.

Are Home Prices Dropping in Melbourne?

The data indicates a positive trend in Melbourne’s home prices. With an average home value increase of 1.9% over the past year and a median sale price of $335,667 (December 31, 2023), there is no evidence of a significant drop in home prices. However, market conditions can evolve, and it’s essential to stay updated on the latest trends and forecasts to make informed decisions.

Will the Melbourne Housing Market Crash?

As of the current data available, there is no indication of an impending housing market crash in Melbourne. The steady increase in average home value and a balanced median sale to list ratio of 0.976 (December 31, 2023) suggest a resilient market. However, external factors and economic shifts can influence market dynamics, so continuous monitoring is advisable for both buyers and sellers.

Is Now a Good Time to Buy a House in Melbourne?

Considering the current state of the Melbourne housing market, now could be a favorable time for buyers. The 73.8% of sales under list price (December 31, 2023) indicates opportunities for negotiation, and the average home value increase of 1.9% over the past year suggests a market that is not overheated. However, individual circumstances and long-term goals should be considered when making such a significant decision. Consulting with a real estate professional can provide personalized insights based on the specific needs and objectives of potential buyers.

Melbourne Housing Market Forecast 2024
Source: Zillow

Should You Invest in the Melbourne Real Estate Market?

1. Population Growth and Trends:

Investing in the Melbourne real estate market is promising due to the city’s steady population growth and positive trends. The influx of new residents, evidenced by the data, indicates a robust demand for housing, potentially driving property values higher.

2. Economy and Jobs:

  • Economic Stability: Melbourne’s stable economy provides a solid foundation for real estate investment.
  • Job Opportunities: The city’s job market is a key factor, offering diverse employment opportunities that contribute to housing demand.

3. Livability and Other Factors:

Melbourne’s high livability index, coupled with its proximity to beaches and natural attractions, makes it an attractive location for residents. A desirable living environment often correlates with a strong and stable real estate market.

4. Rental Property Market Size and Growth:

  • Market Size: The rental property market in Melbourne is sizable, catering to a diverse tenant population.
  • Growth Potential: With the city’s population growth and economic stability, the rental market is poised for expansion, providing income opportunities for investors.

5. Other Factors Related to Real Estate Investing:

  • Infrastructure Development: Ongoing infrastructure projects can positively impact property values and overall real estate investment potential.
  • Government Initiatives: Keep an eye on any government incentives or initiatives supporting real estate development and investment in Melbourne.
  • Market Competitiveness: Melbourne’s competitive real estate market suggests a high demand, offering opportunities for appreciation and favorable returns on investment.
  • Resilience to Market Fluctuations: Analyzing historical data to understand how Melbourne’s real estate market has weathered economic downturns can provide insights into its resilience.

Considering Melbourne’s population growth, economic stability, livability, expanding rental market, and other positive factors, investing in the Melbourne real estate market appears to be a prudent choice for investors seeking long-term growth and returns.


References:

  • https://www.redfin.com/city/11199/FL/Melbourne/housing-market
  • https://www.realtor.com/realestateandhomes-search/Melbourne_FL/overview
  • https://www.zillow.com/home-values/19307/melbourne-fl/

This post was originally published on 3rd party site mentioned on the title of this site

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