Family homes in demand
The June quarter REIV median prices compared the levels of demand for homes according to their region and number of bedrooms.
This showed that while overall demand increased, there were types of homes in certain regions that recorded different levels of demand.
It is important to know this detail if you are in the market: all property is subject to a particular local market and awareness of this needs to inform your decision-making process.
The strongest demand was recorded in the south–east, for two-bedroom homes in areas with a median of $600,500. This is a very high price for a two-bedroom home, highlighting that demand is well and truly exceeding supply for that type of home.
Three-bedroom homes in the western suburbs recorded the second-strongest demand, with an increase in the median that was 50 per cent higher than Melbourne as a whole. This is consistent with our view that good value housing can be found in the west and, judging by that result, many buyers have realised the same thing.
Third on the list was a fairly standard family home, the three-bedroom house in the outer east. There the median increase by 9.4 per cent over the quarter to reach $528,000. There was a clear trend in the June quarter of strong demand in the affordable segment of the market, a trend that is reflected in the demand for family homes in the outer east.
The most expensive type of home appears to be the four-bedroom home in the inner south, the median for which is $1.8m.