Melbourne's median house price up 2.4% in June quarter : REIV

The median house price in Melbourne rose slightly in the June quarter by 2.4% to a seasonally adjusted $562,000, according to the Real Estate Institute of Victoria (REIV).

The gain was only possible after the preliminary median house price in the March quarter was a revised down sharply from $561,500 to $549,000, raising doubts about claims at the time that it was "the strongest March quarter in just over a decade".

Had the figure not been revised downward, no growth would have been recorded over the June quarter.

Commenting on the June quarter results, REIV chief executive officer Enzo Raimondo says those selling or buying should take advantage of these improved conditions.

“Conditions for both buyers and sellers look very solid in the lead up to the spring selling season.

“Unlike last year, there are more active buyers looking for a home and this is driving moderate price growth.

Compared to the June 2012 quarter, the median house price increased 8.4% from $518,500.

Raimondo says Melbourne is still on track for moderate growth in 2013.

Suburbs that saw the strongest growth in the quarter include Hawthorn East, Glen Iris, Malvern East and Kew.

Raimondo says Ringwood, Croydon and Lilydale in the outer east saw strong demand from buyers around the $500,000 price point.

“The healthy demand recorded in many suburbs around the median price point, including Keysborough, South Morang, Craigieburn and West Footscray will in part be a result of first home buyers rushing to take advantage of the now ended $7,000 grant,” says Raimondo.

Raimondo says clearance rates were stable compared to the March quarter, but were up 10% on the same time last year.

In regional Victoria, Ballarat’s median house price rose 0.9% to $287,500 but no change was recorded in Bendigo with a median house price of $310,000.

There was also no change to Geelong’s median house price recorded in the March quarter at $385,000.

Raimondo says units and apartments recorded a similar level of demand to houses with a 2.8% increase in seasonally adjusted terms to $464,500.

“Median rents also remained stable in most parts of the metropolitan area except for two-bedroom houses in the middle suburbs which saw a 4.5%,” says Raimondo.

Nicola Trotman

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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