It now seems that Melbourne is more than likely not going to see another big property boom for the next 12 months. This news comes according to a survey for leading property experts. The hopes that property would rise further this year have been wiped clear – mostly due to things like interest rates and affordability issues. This has forced thousands of buyers out of the market and thus, hurt the housing industry.

So far, the Victorian properties analyzed in March had predicted that property prices would rise about 5.8 percent over the next 12 months. In the past three months, their expectations have slumped to just 0.7 percent, according to the National Bank survey of more than 240 industry experts.

Experts go on to state that Victorian property prices will record the smallest price rise of all the states over the next year. The experts were at least optimistic about rises in Canberra of only 2.9 percent and Adelaide of 2.2 percent. A few were even optimistic about a rise in Sydney to 2.1 percent.

These results are big problems for vendors, who excepted the market to be flooded over the spring selling season. Buyers who do not believe prices are about to rise are less likely to bid strongly at auctions. Interest rate rises have added on some $317 a month to a loan of about $300,000. These are increases that some people just cannot afford to pay right now.

Right now, Spring is said to be the next really big test for the property market. Vendors are currently hoping that increased stock levels and higher interest rates will not lead to lower prices.