Melbourne's housing market remains hot, with the city's median house price of $669,000 in the final quarter of 2014 up five per cent on the September quarter. House prices increased in inner, middle and outer suburbs, the latest REIV quarterly results released today show.

"Inner Melbourne increased by 11.7 per cent for the year with middle Melbourne up by 13.2 per cent and outer Melbourne at 8.9 per cent," REIV Chief Executive Officer Enzo Raimondo said.

"Melbourne's record-breaking auction boom, which continued until just days before Christmas, helped push home prices up.” Raimondo said at the end of 2014 Melbourne house prices were up 11.7 per cent compared with 2013. He said that the three months to the end of December saw substantial price growth in many suburbs, with 20 Melbourne suburbs seeing growth above 10 per cent for the quarter. Leading the list for quarterly growth was Kew, followed by Carlton North, Dromana and Northcote.

The regional market also rebounded, with the December quarter median house price at $344,000, up 5.5 per cent on September.

"The data shows the regional market's increasing strength: a year ago its median house price of $320,500 was a new record. In 2012 it was just $302,000," said Raimondo. Melbourne's unit and apartment median price was up 1.6 per cent to $511,500, while in regional Victoria the median unit and apartment price rose 4.0 per cent to $257,000.

"With interest rates at record low levels for more than a year, the buoyant finish to the 2014 house sales year, with a string of big auction weekends in December, is likely to give a fillip to the coming summer/autumn selling season,” said Raimondo.

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McGrath establishing solid presence in Melbourne