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Property News

Melbourne housing market stabilises

July 16, 2012

Recent figures have revealed that the Melbourne residential property market has stabilised, indicating a halt in declining house prices across the city.

According to the latest June quarter results from the Real Estate Institute of Victoria (REIV), property prices across Melbourne have plateaued following consecutive falls over the last 12 months.

REIV chief executive officer Enzo Raimondo said while there had been no price growth in the Melbourne housing market, prices had remained steady.

"Both buyers and sellers are approaching the market in a conservative manner. This is translating into a lower number of sales than is present in a strong market and as a result, no real price growth has been recorded," Mr Raimondo said.

After a median price drop of 5.3 per cent in the last year, the overall average remained stable in the last six months.

"The real estate market moves in cycles and after the initial price falls in 2011, it is now in a period of stability marked by low activity," he explained.

Those looking at purchasing an investment property in Melbourne may be interested by a recorded increase in demand for dwellings in Balwyn, Malvern East, Langwarrin, Newport, Cheltenham, Pakenham and Reservoir.



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