The REIV has released the December quarter median prices, revealing that the median price of a house in Melbourne has increased by 6.9 per cent to $601,500 from a revised $562,500 in the September quarter.
REIV CEO Enzo Raimondo said this was the first time that the median house price had exceeded $600,000 and it was clear that housing affordability would be a key issue this year for buyers and the Victorian community.
“Increased house prices in the last quarter and over the last two years are due to an imbalance between housing supply and the needs of our growing population.
“This is a systemic problem with the local market and steps need to be taken to increase supply over the medium-term to ensure it is not further diminished in the future.
“With a full analysis of the sales results from last year’s spring selling season, it is clear that prices buyers are willing to pay increased substantially compared to the winter months.
“Low weekly auction clearance rates did not result in reduced prices for the homes that sold and demand for homes sold by private sale outstripped those at auction.
“Million dollar suburbs Canterbury, Hawthorn and Kew recorded the largest increase in their median house price over the quarter and strong increases were also found in the more affordable suburbs of Seaford, Langwarrin, Epping, Cranbourne and Tarneit.
“Demand was strongest in October and then it reduced over the quarter following the November interest rate increase, a sign that further increases would not be welcomed by buyers or sellers.
“The median price of a unit or apartment increased by 2.6 per cent to $480,000 from a revised $468,000 in the September quarter.
“House prices in regional Victoria increased by almost the same as the metropolitan area, with a 6.3 per cent increase to $320,000 from $301,000 in the September quarter. Of the three larger regional cities, the City of Ballarat had the largest increase, with an increase of 7.9 per cent to $276,750,” Mr Raimondo concluded.
Of course the figures quoted are just averages and some areas have performed better than average and others have underperformed. You can search for the median price for any Melbourne suburb at the REIV’s website here
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.