Melbourne market sustained by upper-price, inner-city home sales: APM

Melbourne’s housing market has risen since the Easter holiday period, with auction clearance rates on the rise over April and May, according to Australian Property Monitors.

Auction listing numbers also rose over this period, with more than 700 extra properties offered for auction compared to the same period a year ago.

"This indicates that seller-confidence is on the rise in a market that continues to perform at three-year highs," Dr Andrew Wilson, the APM senior economist said.

The Melbourne market has been sustained by upper-price, inner-city home sales, although a more general pattern of buyer activity is emerging.

Middle-ring, mid-price range suburbs, particularly to the east of the city have attracted increased buyer activity.

Changes to the first home owners grant, announced by the local state government, will impact on the Melbourne market, as buyers rush to take advantage of the grant for established home purchases before it expires on the 30th June.

"The local Melbourne economy does however remain under a cloud, with the announcement of job cuts, particularly in the manufacturing industry contributing to the highest unemployment rate of the mainland capitals, which was at 6.2 percent in April," Dr Wilson said..