The REIV September quarter medians show that the residential housing market continues to remain stable with a median house price in Melbourne of $530,000 compared to the revised June quarter median of $525,000.
An improvement in consumer confidence necessary for capital growth
Whilst home buyers and sellers have been acting cautiously this year, prices have remained stable. The REIV believes that once there is an improvement in consumer confidence capital growth will return.
The pattern this year has been low transactions and prices at the level they were in early 2010. A combination of lower interest rates, lower prices, an improving clearance rate and small improvements in consumer confidence should sow the seeds of a recovery in the residential housing market.
REIV analysis of the market shows prices are beginning to trend upwards, particularly in the middle and outer suburbs. In trend terms the inner city median has dropped by 0.4 per cent this quarter compared to an increase of 1 per cent in the middle suburbs and 0.9 per cent in the outer suburbs.
Improvements recorded across the state
The highest growth was recorded in Thornbury where the median has increased by 11.4 per cent to $750,000, in Yarraville with an 8.8 per cent increase to $615,000 and Preston which recorded an 8.2 per cent increase to $598,000. The suburbs of Mitcham, Cranbourne, Croydon, Greensborough and Rowville also recorded strong growth in demand and median prices over the quarter.
Improvements in the middle and affordable price segments are also reflected in the fact that the median price of a house sold at auction dropped by 1.3 per cent to $691,000 whilst one sold by private sale increased by 0.2 per cent to $461,000.
The median for units and apartments was also largely stable with a 0.7 per cent reduction to $442,000.
In regional Victoria the median house price was also stable with a minor 0.7 per cent increase to $307,000. The three main centres reflected this and recorded mixed results with the median price of a house in Ballarat increasing by 1.8 per cent to $285,000, in Bendigo it dropped by 2 per cent in the quarter to $301,000 and in Geelong there was a 6.1 per cent reduction to $362,000.