Melbourne median house prices stable for second quarter in a row, auctions to pick up: REIV

Melbourne’s property market is expected to see stronger sales in May and June after a slow start to 2016, based on data showing the median house price has remained relatively stable for the second consecutive quarter.

The capital city's median house price was $713,000 for the three months to March 31, according to REIV figures released this week.

The stable median house price and the pickup in the number of auctions from late April through to early June was good news for buyers, said REIV chief executive officer, Enzo Raimondo.

“The moderate market will allow many more owner occupiers, including some families, strong opportunities to get a foothold on the property ladder,” he said.

The forecast strong listings, coming off the back of what has been a big 12-18 months, is expected to further add to buyer opportunities, with a wider array of homes on offer.

“Traditionally, March is one of the strongest months for property sales with high auction volumes and listings. This year has been slower, mainly due to the consecutive Labour Day public holiday, followed by Easter and the school holidays – pushing many auctions and private sales into late April and May,” he said.

In the first three months of 2016, outer Melbourne again proved to be the best performing area of Melbourne, with most of the top growth suburbs in the north and west of Melbourne.

REIV president Geoff White said that this included Epping, Caroline Springs and Werribee – and followed strong growth in the outer north-east in the December quarter, when Warrandyte recorded strong growth.

White said that “Epping and Bentleigh East recorded growth of 10.8 and 9.9 per cent respectively”.

“The only suburb within 10 km of Melbourne within the top three suburbs was Malvern East, which delivered quarterly growth of around 13 per cent,” he said.

Other outer suburbs delivering high quarterly growth were Langwarrin, Doreen Rowville and Keysborough. In fact, 12 of the top 20 growth suburbs were in outer Melbourne, he added.

“This signals continuing buying demand for homes in the city’s outer suburbs, as homebuyers look for value further from the CBD in the current market,” White said.

The median house price in Melbourne’s outer ring – that is, more than 20 km from the CBD – reached $557,500 this quarter, up almost $3,000 on December.

Meanwhile, unit and apartment prices fell slightly across the city, down 1.8 per cent in the March quarter to a median of $525,500. The decline follows solid growth of 1.6 per cent in December.