The median price of a house in Melbourne rose slightly in the June quarter with a 2.4 per cent increase in seasonally adjusted terms to $562,000 from a revised $549,000 in the March quarter. REIV CEO Enzo Raimondo said that the improvements recorded over the past few months had been retained this quarter and Melbourne was still on track for moderate growth in 2013.
Mr Raimondo said “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. Interest rates are low, consumer sentiment has improved, and clearance rates are higher. Those considering buying or selling should take advantage of these improved conditions.”
“Suburbs with the strongest growth in median prices in the quarters were some of the city’s most expensive: Hawthorn East, Glen Iris, Malvern East and Kew. Ringwood, Croydon and Lilydale in the outer east also 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. Units and apartments recorded similar level of demand to houses with a 2.8 per cent increase in seasonally adjusted terms to $464,500.”
“Clearance rates were stable compared to the March quarter but up 10 points on this time last year. Median rents also remained stable in most parts of the metropolitan area except for 2 bedroom houses in the middle suburbs which saw a 4.5 per cent rise.”
“Median house prices in key regional centres were stable with a 0.9 per cent rise in Ballarat to $287,500; no change to the $310,000 recorded in Bendigo during the March quarter; and no change to the $385,000 recorded a quarter ago in Geelong,” Mr Raimondo concluded.
NOTE: The REIV has adopted the seasonally adjusted median for overall comparisons as it is less affected by the compositional variations that are particularly pronounced in the December and March quarters. Read more about our methodology here.