Property recovery in sight for Melbourne
Melbourne's property market has turned a corner, with a recovery in sight, the state's peak real estate body has indicated.
Enzo Raimondo, Real Estate Institute of Victoria president, said the residential property sector is in a better position than it was a year ago, and upswing will continue into 2013.
"There are three reasons to be confident about prospects for the market in 2013: consumer confidence levels are above this time last year; the clearance rate is higher than this time last year; and overall prices have been stable," Mr Raimondo explained.
"Affordability is at reasonable levels with prices remaining below their peak and interest rates at historical lows."
The expert went on to add that the inner-city market offers the best value for money, with the median property price 10.4 per cent below its peak.
In comparison, the middle suburb house prices are 9.3 per cent lower than its peak and 7.9 per cent below in the outer areas.
Affordability has improved in regional Victoria, with Geelong, Ballarat and Bendigo all recording lower house prices.
Mr Raimondo attributed the upturn to low interest rates, stamp duty cuts and increasing consumer confidence.