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Outgrown your home? Here's why many Melbourne owners are upgrading right now
Homes that once felt perfect can start to feel a little too small as life changes. Maybe the kids need more room to spread out, you're dreaming of a bigger backyard or you're ready for a location that better suits your lifestyle.
Many homeowners are currently weighing up whether it's the right time to make a move, with interest rates still higher than they were a few years ago and property values softening across Melbourne.
The good news is that upgraders are in a unique position. Softer market conditions may actually be creating opportunities for you — allowing you to buy your next home sooner than you think.
A softer market could make upgrading more achievable
When property values soften or experience slower growth, the gap between your current home and your next home can become more manageable. In many cases, the premium required to move from a smaller property to a larger family home is lower than it would be during a rising market.
For example, if your current property has reduced in value by 5%, a higher-value property may have experienced a similar percentage adjustment. While you may receive slightly less for your sale, the amount you're spending on your next purchase may have reduced by a much larger dollar figure.
Recent data from the Real Estate Institute of Victoria (REIV) shows Melbourne's metropolitan market has softened by an average of 3.1%. Because you're buying and selling in the same market, it can help you achieve a bigger home, a better location or a more spacious backyard.
The family home market remains competitive
While some segments of the market have experienced softer conditions, quality homes located in tightly held family-focused neighbourhoods continue to attract strong interest.
For homeowners looking to upgrade, there is still solid demand for well-presented homes while at the same time providing greater opportunities to purchase at the next level.
This means you may be able to achieve a strong result on your sale while finding better value on your next property.
Your equity could give you a head start
Equity is simply the difference between what your home is worth and what you still owe on your mortgage. If you've owned your home for a number of years, there's a good chance you've built up more equity than you realise.
Even in a softer market, long-term homeowners are often in a stronger position than they think. The equity in your current home could help you:
- Put together a larger deposit for your next home
- Reduce the amount you need to borrow
- Give you more flexibility when exploring different suburbs or property types
- Approach your next move with greater confidence
Before making any decisions, speak to your broker or lender so you have a clearer picture of your financial situation.
Thinking about upgrading? Let's chat
Whether you're ready to move now or simply exploring your options, we're here to help you understand the market and what it means for your next step.
