Property Market in a Period of Stability

The REIV 2012 March quarter median prices indicate that property prices have remained relatively flat over the quarter and year so far. The median house price in metropolitan Melbourne was $535,000, representing a minor increase of 0.9 per cent from the December quarter median price of $530,000.

In simple terms, this indicates that demand for residential property over the past year reflected the broader state of the economy and that buyers will continue to find that prices will maintain their current levels in the short term.

To summarise the current state of the property market:

1. The property market moves in cycles and now we are in one of stability, with overall median house prices showing no real growth.

2. The last 12 months also reflect both an easing in population growth and improvement in the supply of new homes. The unit and apartment market is also mostly stable.

3. Until the economy and consumer confidence improves, the market is likely to remain as it is now.

4. Buyers and sellers in particular will be watching interest rates very closely over the next quarter.