| Dec Qtr
2011 | % chg
Sept 2011 -
Dec 2011 | Sept Qtr
2011 | % chg
Dec 2011-
Dec 2010 | Dec Qtr
2010 |
|---|
Houses |
$550,000 |
1.9% |
$540,000 |
-5.2% |
$580,000 |
Units |
$455,000 |
1.1% |
$450,000 |
-4.2% |
$475,000 |
Affordability improves as house prices remain stable
The REIV 2011 December quarter median prices confirm that house and unit prices remained relatively stable over the quarter. The median house price in metropolitan Melbourne was $550,000, representing a minor increase of 1.9 per cent from a revised September quarter median of $540,000.
REIV CEO Enzo Raimondo said that demand in the local residential market improved marginally from the previous quarter, as did housing affordability, due to the two interest rate cuts; however, transaction numbers were significantly lower than for the same time the previous year.
“REIV data confirmed that, overall, the median house price has not changed over the last six months; the key factors driving the current market are a combination of lower consumer confidence, a slowing state economy and an increase in supply.”
Feedback from REIV Members during the December quarter was that buyers are not as willing to buy and sellers are not as anxious to sell as they hold out for an improvement in conditions.
“As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions.
“The strongest growth in demand was found in Kew, Prahran, Kensington, Mornington, Port Melbourne, Balwyn North, Blackburn, Wantirna South, West Footscray and Mount Waverley; however, most of these suburbs recovered ground lost in the September quarter.
“In contrast to the last few quarters, there was very little difference in the performance of the auction and private sale markets. Houses sold at auction recorded a median of $700,000, an increase of 1.4 per cent, while those sold at private sale recorded a 0.7 per cent increase to $478,444.
“The performance of the unit and apartment market mirrored that of houses, with the median price increasing by 1.1 per cent to $455,000. The strongest demand was recorded in North Melbourne, Armadale and West Footscray.
“The median price of a house in regional Victoria rose by 0.8 per cent to $312,500. Of the three main regional centres, demand was highest in Bendigo, where the median house price increased by 6.3 per cent to $294,000. In Ballarat the increase was 3.6 per cent to $290,000 and in Geelong there was a drop of 2.3 per cent to $380,000.
“The REIV does not predict any significant change in the market during the March quarter as it is generally the quarter with the least activity, however we are starting to see signs that the market may have bottomed in 2011and, if there are improvements in economic conditions, we may see an improvement in transaction activity from the second quarter of this year,” Mr Raimondo concluded.
To find out more
- To find out median prices in individual suburbs please use the search box below.
- The REIV Property Update for the December quarter will be available to purchase in mid February. Click here to find out more.