The latest REIV house price data shows that the median price of a house in Melbourne has remained steady at $535K in the June quarter.

REIV CEO Enzo Raimondo said that a combination of broader economic factors, slowing population growth and continuing low levels of consumer confidence have resulted in no real capital growth in the residential market this year.

He said the June quarter median price data confirms that both buyers and sellers are approaching the market in a conservative manner.

“This is translating into a lower number of sales than is present in a strong market and, as a result, no real price growth has been recorded,” he said.

“The real estate market moves in cycles and, after the initial price falls in 2011, it is now in a period of stability marked by low activity.”

“The median price has fallen 5.3% over the
2.9% to $535K from a revised March median of $520K; and the median price of a unit increased by 2.3% to $450K from a revised March median of $400K.”

“Demand in both Balwyn and Malvern East has strongly improved and values are now almost at the peak recorded in 2010. However, many suburbs still remain below their previous peaks.”

“Healthy demand was also recorded in Langwarrin, Cheltenham, Newport, Pakenham and Reservoir. Of those, only Pakenham’s values are the closest to an all time high.”

“Houses sold through private sale have recorded an increased median of 2.1%, whilst those sold at auction have seen a 2% drop. This reflects the low clearance rate of 60% in the quarter.”

“The rental vacancy rate was 2% in the quarter, which was a reduction on the 2.2% recorded in the March quarter and showed improvement in the availability of rental homes compared to a year ago, when the vacancy rate was 1.8%,” Mr Raimondo concluded.

James Worssam
M: 0418 585 815

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