The REIV has released the September quarter median prices, which reveal that the median price of a house in Melbourne has increased by 0.9 per cent to $565,000 from a revised $560,000 in the June quarter.

REIV CEO Enzo Raimondo said that after 18 months of unprecedented growth that saw the median price increase by $160,000 from $405,000 in the March quarter 2009, price growth had levelled off.

“House prices have never been this high and it is clear that affordability will continue to be a significant issue, particularly for first home buyers.

“As Melbourne enters another spring selling season, it is clear the market is well balanced; more homes have been sold than any year since 2007 and buyers are benefiting from a very healthy level of supply.

“The more moderate market will make it easier for buyers this spring, particularly in the auction market, where a higher number of listings have resulted in a slight reduction in prices compared to the June quarter.

“Essendon was the standout suburb this quarter; its median house price increased by 14.4 per cent to $1.15M and it had a 79.1 per cent clearance rate for auctions. It also recorded a 13 per cent increase in the median price of a unit or apartment.

“Affordability continues to be a concern and buyers have targeted a range of suburbs with medians below half a million last quarter, for example Mooroolbark, Hillside, Melton and Frankston South.

“Driven by population growth, a number of the city’s growth suburbs, such as Roxburgh Park, Craigieburn, Tarneit and Werribee, also featured in the best performing suburbs.

“Similar conditions were apparent in the unit and apartment market, the median for a unit or apartment was $470,000 in the quarter, a minor increase of 0.3 per cent.

“Demand for housing in regional Victoria was slightly stronger than metropolitan Melbourne this quarter. The median price of a house in regional Victoria increased by 1.7 per cent from $300,000 in the June quarter, to $305,000 in the September quarter,” Mr Raimondo concluded.

Source: reiv.com.au