Melbourne's price growth strongest of all capital cities, but below previous peak: APM

Melbourne's median house price remains 1.4% below its previous peak of around $561,000 in June 2010, according to Australian Property Monitors’ quarterly housing market report.

Its median price as of the end of the June quarter is $553,447, up 5% over the three months to record the strongest price growth of all the capital cities.

“Melbourne’s housing market continues to record solid to strong results, with buyer activity spread relatively evenly through most regions, price brackets and buyer types,” the report says.

“Auction clearance rates in Melbourne have continued to average close to 70%, which is the highest since the boom period of 2009 and 2010. Seller activity is also rising in Melbourne, with auction listings 9% higher in July 2013 compared to July 2012."

“Melbourne recorded the highest house price growth of all the capitals over the June quarter, increasing by 5% – the best result since March 2010. Melbourne house prices increased by 5.7% over the first half of 2012, and are up by 6.1% over the 2013 financial year."

“Despite strong recent growth, Melbourne’s median house price remains nearly 2% below its previous price peak recorded in June 2010."

“Despite a resilient performance so far this year, the outlook for the local Melbourne economy remains mixed, with the jobless rate expected to rise through the remainder of 2013. This is unlikely to affect the housing market in the short-term, with the market likely to be boosted by the upcoming spring selling season,” the APM report stated.