Real Estate Institute of Victoria Reports

Real Estate Institute of Victoria Reports

estate The REIV reported that Melbourne’s median house price dropped from $370,000 to $352,000 over the March quarter. Apartments were also hit hard, shedding 5 per cent of their value. Price falls were reported across the metropolitan area. Among the hardest hit were Templestowe (down 18.2 per cent), Ascot Vale (down 14.7 per cent), Malvern (down 10.9 per cent) and Mount Martha (down 8.1 per cent).

But the news for homeowners was not all bad. Prices rose strongly in Port Melbourne (up 7.1 per cent), Albert Park (up 10.7 per cent) and Seaford (up 7.4 per cent). 
Analysts were quick to play down the significance of the quarterly price results, saying a big influx of first homebuyers at the lower end of the market had pushed down median house prices in many suburbs.

In other signs of a property market correction: 

•  Apartment building approvals plunged in March after the Reserve Bank’s decision to raise official interest rates
• Prices for housing trades fell during March for the first time in two years as renovation and building work slowed.
• Housing affordability has continued to ease on the back of falling house prices and continued low interest rates.

REIV Chief Executive Enzo Raimondo said: “The fall in both house and unit/apartment prices over the year of 4.9 per cent and 2.3 per cent respectively is further evidence that the residential property market has softened.

“While the February interest rate rise may have had some impact on the property market, much of this quarter’s movement can be put down to seasonal variations which historically show that March quarter prices usually fall.‘’ 

Mr Raimondo said it was not unusual to see the market settle after the increased activity of the spring selling season.

“The REIV has forecast modest price growth over the next 12 months, as the market settles into a new property cycle,” he said.

The latest REIV house price data held little good news for Melbourne homeowners. For buyers, however, it was manna from heaven.

The REIV reported that Melbourne’s median house price dipped from $370,000 to $352,000 over the March quarter. Apartments were also hit hard, shedding 5 per cent of their value.

Price falls were reported across the metropolitan area. Among the hardest hit were Templestowe (down 18.2 per cent), Ascot Vale (down 14.7 per cent), Malvern (down 10.9 per cent) and Mount Martha (down 8.1 per cent).

But the news for homeowners was not all bad. Prices rose strongly in Port Melbourne (up 7.1 per cent), Albert Park (up 10.7 per cent) and Seaford (up 7.4 per cent).

Analysts were quick to play down the significance of the quarterly price results, saying a big influx of first homebuyers at the lower end of the market had pushed down median house prices in many suburbs.

1. Melbourne Property Buyers
2. REIV Reports
3. Melbourne’s Better Performing Suburbs