Median house prices in the middle suburbs of Melbourne have exceeded seven figures for the first time, while small decreases at the affordable end of the market enables opportunities for market entrants. 

New REIV data shows the metropolitan Melbourne house price rose for the eighth consecutive quarter, up by 4.4 per cent to $855,000.

REIV Active President Richard Simpson said that in spite of lower auction clearance rates, the overall Melbourne market is continuing to build on last year. 

"The median for the March quarter last year showed a higher increase than this year, but then again, calendar 2017 turned into the best since 2010, with overall growth of 13.2 per cent," he said.

Source: REIV

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Melbourne house prices are up 10.9 per cent over the last year, according to REIV data

"Continued population growth and interest rates maintained at historically low levels mean that first-time home buyers, more seasoned purchasers and investors are taking opportunities in a market that is longer on demand than supply," he said. 

The highest performing suburbs in the March quarter were dotted around the map, with each of the top five located in a different local government region - showing the strength of the market across disparate price points. 

Kew topped the list, with the median price of houses rising to $2.7m representing a whopping increase of 26.9 per cent over the quarter. 

Tarneit also made the top 10 for quarterly growth with a median of $587,000 - an increase of 10.2 per cent. 

Source: REIV

Read more about the Melbourne market: 

Buyers save millions making apartments their entry point into Melbourne's top suburbs

Three-bedroom houses outperforming all other Melbourne property types: REIV

Melbourne's best performing real estate: two-bedroom houses