Latest REIV Statistics Indicate an Improving Market

The latest statistics produced by the REIV have revealed good early signs for the Melbourne housing market in 2012.

The REIV 2011 December quarter median prices confirmed that house and unit prices increased late last year, with a median house price in metropolitan Melbourne of $550,000 – an increase of 1.9% from a revised September quarter median of $540,000.

Demand in both the local residential market and housing affordability improved, due to the two interest rate cuts in the second half of 2011.

“Heading into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions”, commented an REIV spokesman.

“One possible outcome is that the market has bottomed out. But we are really going to have to wait and see what happens with the economy, because it’s the primary determinant on the market at the moment”.

In the December quarter there was very little difference in the performance of the auction and private sale markets. Houses sold at auction recorded a median of $700,000, an increase of 1.4%, while those sold at private sale recorded a 0.7% increase to $478,444.

The performance of the unit and apartment market mirrored that of houses, with the median price increasing by 1.1 per cent to $455,000.

The REIV is not predicting any significant change in the housing market during the March quarter. However with signs that the market may now have bottomed out in 2011 and if there are improvements in economic conditions, we could see further improvement in market conditions from the second quarter of this year.