The REIV June quarter medians have revealed that the metropolitan median price of a house has increased 9 per cent from $405,500 to $441,875. The improvement can be attributed to low interest rates, confidence in the market, continuing population increases and the financial assistance to first home buyers.
REIV CEO Enzo Raimondo said the Melbourne housing market has recovered almost all of the value lost during 2008 with the median price approaching the 2008 peak of $450,000.
“The previous three quarters of negative growth have been reversed and at it this stage the spring selling season looks like it will be very healthy.
“All segments of the housing market are seeing a recovery with the upper end increasing by 14.3 per cent and the affordable segment by 6.6 per cent.
“The pleasing result is a sign that most vendors in the last three months had benefited from strong demand.
“The recovery has been led by the upper end with Kew recording the highest growth in the quarter followed by Albert Park, Toorak, Hawthorn East and Balwyn. For many of these suburbs they are still below the peaks that they reached in the boom of 2007.
“Affordable suburbs around the median price have also shown excellent capital growth over the year. Footscray’s median increasing by 18.9 per cent to $535,000, Craigieburn’s by 18.5 per cent to $320,000 and Diamond Creek’s by 18.3 per cent to $508,675. What is traditionally regarded as one of Melbourne’s most affordable suburbs, Broadmeadows, has recorded an increase in its median of $37,500 over the year.
“The unit and apartment market has recorded an almost identical increase as houses with the median price increasing by 8.3 per cent over the quarter from $360,000 to $390,000
“This shows the impact that the first home owner’s assistance, record low interest rates and increased investor activity has had on the market.
“The first home owner’s assistance and the low interest rates have had a positive effect on the residential market,” Mr Raimondo concluded.
| Metropolitan Melbourne Median Prices – June Quarter | ||||
|
|
Jun Qtr 2009 | % chg Mar-09 to Jun-09 | Mar Qtr 2009 | |
| Median - houses |
$441,875
|
9.0%
|
$405,500
|
|
| Median - units |
$390,000
|
8.3%
|
$360,000
|
|
