Price of buying a house in Melbourne on the rise
Melbourne's house price index (HPI) is showing that residential property prices are now 3.6 per cent below their peak in nominal terms with a 0.6 per cent appreciation in April.
In a report from the Real Estate Institute of Victoria (REIV), data shows that the HPI is now 139, while the unit price index was also up with an extra 0.5 per cent through April to reach 136.6.
Taking inflation into account, house prices in the city are 8.5 per cent down from their peak three years ago.
The seasonally adjusted median house price in Melbourne for the March quarter was $561,500, up from $534,000 in the previous quarter.
After two years of lost ground, the average price of buying a house in the city is making slow progress back toward its previous levels.
REIV chief executive officer Enzo Raimondo explained that "there are a number of factors increasing demand; increasing population growth, improved consumer confidence and overall affordability assisted by lower interest rates".