YOUNG families, those looking to get a footing on the property ladder and low to middle-income earners are being priced out of the Mildura property market as competition to secure a home reaches record levels.
There is no doubt the property market is surging, with investors swooping into town with open pockets ready to make a solid investment.
But, as a result, many home-hunters are being priced out of the market due to the incredibly competitive nature of the buying process as houses sell for well over the top asking price.
I have been looking to buy in Mildura for more than 18 months.
What began as an exciting venture with seemingly reasonable prices compared to capital cities has reached a point where the prospect of an offer actually being accepted seems increasingly unlikely, and I’m sure I’m not alone.
On Monday I went to an inspection for a three-bedroom, two-bathroom house in the Mildura South area, only to stand in a line-up of 40 others waiting to view their prospective home.
I later found out that only two days before, a further 40 groups had traipsed through the same property.
The prospect of actually securing the home from a pool of 80 potentially interested buyers at a reasonable, or even slightly elevated price, is virtually impossible.
It seems to be the norm that inspections, particularly for houses in a good neighbourhood, boasting three bedrooms on a 400sq m to 600sq m block and under the $400,000 mark, are most in demand.
So you can expect to be looking at each of those homes, along with 40 to 80 other prospective buyers.
You’d be forgiven for thinking house prices would crash during a global pandemic, but in a market where there is a significantly higher number of buyers than sellers, mixed with cashed-up investors, this certainly is not the case.
Earlier this month, a Mildura house that went to auction attracted a sold price $10,000 above reserve and another in Red Cliffs for $53,000 above reserve, and believe me, there was nothing modern or particularly special about the properties.
And that’s not unusual, with another property fetching a price of just over $370,000 in seven days, having attracted seven offers, five of which were above the top of the range.
While there are incentives for first-home buyers, quite often those payments are being built into the sale price and marketed to those who qualify.
But what does this mean for first-home owners, the younger generation and low to middle-income earners?
Much of the allure to move to Mildura for many people has affordable housing, which is no longer the case.
So will this shift push those looking to put down roots to search for a another regional location where there is a far less competitive property market?
Or will the market forcibly create a city of renters rather than owners, and — if so — what kind of a way is that to live?
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