The median house price for middle Melbourne is sitting at less than $900,000 for the first time in almost three years, creating upsizing opportunities for house hunters.

REIV President Robyn Waters said the Real Estate Institute of Victoria’s June 2019 quarterly data report shows the middle Melbourne (10-20kms from the CBD) median house price is $894,000, the lowest it’s been since the September 2016 quarter and down 1.8 per cent from $910,000 in the March 2019 quarter.

“The Melbourne property market correction has created ideal opportunities for those wanting to ‘trade up’ into coveted Middle Melbourne areas such as Eltham, Forest Hill and Mitcham which all share a median house price of $887,500. Meanwhile, a house in Greensborough and Heidelberg Heights will set you back by $740,000 and Vermont’s median house price is $837,000,” Ms Waters said.

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Source: REIV

“Two recent interest rates cuts and APRA’s advice to relax lending standards are among the factors that have cultivated an environment conducive to upsizing.

“Looking at the overall figures for the 2018/19 financial year, Melbourne’s median house price fell 2.4 per cent to $785,000 while the unit median remained unchanged at $590,000.”

Ms Waters also said there were just five metropolitan suburbs to record positive median house price growth in the past 12 months.

“The only suburbs that seemed to escape the property market correction this financial year were Sunbury, Donvale, Ascot Vale, Officer and Cranbourne North,” Ms Waters said.

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Source: REIV

“Growth suburbs of Officer and Sunbury retained their position in the top five list for annual median house price growth for the second consecutive quarter," she said.

“Looking at the suburbs that recorded a median house price boost in the June 2019 quarter, most have a median of more than one million dollars, indicating that there is growing confidence in prestigious areas that had recorded negative results in previous quarters.”

The REIV’s data shows that the metropolitan house price has now fallen for five consecutive quarters but the reduction of 1.1 per cent in June 2019 is softer than the 2.5 per cent drop in December 2018 and 2.0 per cent in March 2019.

Ms Waters said that Regional Victoria, where the median house price has increased by 3.8 per cent to $404,500 in the past 12 months, was another story.

“Regional Victoria has done well in the past financial year and the top five towns for annual median house price growth have retained their positions for the second consecutive quarter,” Ms Waters said.

“Wonthaggi has been a standout, recording a 21.7 increase in its median house price over the past financial year to $365,000 while Redan’s median increased 17 per cent and Wendouree was just behind with a 16.8 per cent increase.

“With auction clearance rates at their highest levels in well over a year and other incentivising factors in the market, the REIV expects the market will continue to pick up in spring.”

Source: REIV

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