Median house price in Melbourne grows
The median house price in Melbourne has risen by more than 7 per cent during the last quarter of 2013, bringing the average price for property in the Victorian capital to a large $643,000 and setting a new high record for the city.
This could be great news for anyone interested in selling a house, with the market expected to retain this trajectory of growth well into the near future. Taking advantage of the sellers market could be a great opportunity to secure a great capital gain from your Victorian real estate.
The Real Estate Institute of Victoria (REIV) announced the strong growth late last week, with Chief Executive Officer Enzo Raimondo announcing that low interest rates, a record number of auctions across the city, and an increase in the number of $1 million plus properties selling in the market contributing to this activity.
He mentioned that buyers were "out in force" during the last quarter of 2013, with an overall auction clearance rate of 70 per cent across the Victorian capital city.
Furthermore, sellers were confident in making sales, with around 12,800 auctions being held during the 3 month period - an average of over 1,000 per week.
"While auctions comprised a higher share of sales this quarter, there was stronger price growth for houses sold by private sale. This has driven some of the price increases in the outer suburbs, where private sales are more popular," said Mr Raimondo in a January 25 statement.
According to the data, Melbourne's inner and middle suburbs experienced the most lucrative growth after prices increased significantly in places like Praharn, Donvale and Fitzroy North during the final quarter of 2013.
Some of the outer suburbs - including Mount Martha and Hoppers Crossing - also experienced some noteworthy residential real estate growth over the last three months of 2013.
However, units paled in comparison. During the same period, demand for units in Melbourne dampened and the median price only grew by 3.9 per cent, rising to $498,000 during the quarter.
Furthermore, the regional markets also increased during the quarter, with the median house price increasing by 2.6 per cent - the highest level since the March 2013 quarter.
"The regional median house price is now at a new record of $320,500 with the three major centres of Geelong, Ballarat, and Bendigo also showing growth."