Melbourne property market sets new records in 2007

With results in from the last major auction weekend this year it is clear 2007 has been one of the strongest years for vendors on record.

REIV CEO Enzo Raimondo said that the auction clearance rate for 2007 was 82 per cent, 15 per cent higher than last year.

"Not only did demand increase but so did the number of auctions. There were 30 per cent more auctions than last year with 29,718 homes presented for auction compared to 22,257 last year.

"To put this into perspective, there were more homes sold under the hammer this year than there were presented for auction last year.

"It is therefore no surprise that residential property has experienced its highest level of growth since 2002 and has exceeded the expectations of many agents, vendors and buyers.

"This is reflected in the increase in prices of homes sold. In 2002 the Melbourne median house price increased by 13.5 per cent, the following four years growth was substantially lower and averaged only 3.5 per cent per year. Over the 12 months to September Melbourne’s median house price has again increased 13 per cent.

"When looking at the significant price growth over the preceding 12 months, which has been driven by strong demand, it provides some insight into why residential property has in many instances been selling for more than the advertised price.

"The performance of the property market next year will depend on the impact of recent rate increases or any further increases and impacts from changes in the costs of living linked to oil or drought," Mr Raimondo concluded.

MEDIA COMMENT:

Chief Executive Officer: Enzo Raimondo, 9205 6666

CPR Communications and Public Relations: Robert Larocca, 9654 4799 or 0409 198 350