The median Melbourne house price has shot up by more than $75,000 in the last three months, setting a new quarterly record.
According to data from the Real Estate Institute of Victoria (REIV), the median house price in the city was $540,500 at the end of 2009, a 15 per cent increase on the $470,000 median price recorded in the September quarter.
REIV chief executive officer Enzo Raimondo said it was the largest increase in median house prices since the REIV started keeping quarterly records.
“The combination of a better than expected economic conditions and strong population growth has resulted in an unprecedented level of pressure on housing costs in Melbourne,” Mr Raimondo said.
“The city’s population is increasing by around 1,700 people per week and unfortunately housing construction has not responded as quickly as would be necessary to ease the pressure in the market.
“The level of confidence in the market is apparent from the number of homes being bought and sold; the REIV has recorded an increase of 22 per cent since the 2008 December quarter.”
According to the REIV figures, Burwood recorded the largest median house increase of 23.1 per cent, followed by Ringwood, Mount Evelyn and Brunswick, which recorded median price increases of 16.2, 16.1 and 15.2 per cent respectively.