REIV releases June quarter median prices
The REIV has released the June quarter median prices which reveal that the median price of a house in Melbourne has increased by 8.5 per cent to $559,000 from a revised $515,000 in the March quarter.
REIV CEO Enzo Raimondo said that as the auction market has returned to a more balanced position, price growth is being driven by demand in the city’s more affordable suburbs.
“The strong June quarter reflected the state’s increasing population and wider positive economic factors and has resulted in higher housing prices in the middle of the market.
“Increased housing prices, rents and interest rates are contributing to worsening affordability in Melbourne.
“Dandenong, which now has a median house price of $500,000, recorded the highest increase – 31.5 per cent – followed by Rosebud, whose median is $413,000 after an increase of 18 per cent.
“Broadmeadows, Footscray and Glenroy also recorded strong increases in demand and their median prices.
“Analysis of sales by method shows that the median price of a house sold by private sale increased by five per cent and the median of a house sold by auction reduced by two per cent. This is in part due to an increased preference for auctions as a sales method in the first half of this year.
“The increased demand and prices in suburbs not dominated by auction sales also reflects the fact that during the quarter the auction clearance rate dropped from 85 per cent to 74 per cent.
“Prices have also continued to rise in the unit and apartment market, with an increase of 4.7 per cent to $463,215 in the quarter. Carlton, Ascot Vale, Malvern East, Northcote and Footscray had the largest increases in their medians over the quarter,” Mr Raimondo concluded.
