New data from the Real Estate Institute of Victoria (REIV) shows the property market in Melbourne is building momentum.
According to REIV president Enzo Raimondo, the REIV December quarter medians confirm increasing buyer demand and rising house prices in Melbourne.
“Strengthening demand has resulted from a combination of improved Victorian consumer confidence, four interest rate cuts and the seasonal increase in activity in the December quarter,” Mr Raimondo said.
The median house price in Melbourne increased from $515,000 to $555,000 (7.8 per cent) in the December quarter, while median price for units and apartments increased by 4.2 per cent to $456,000.
Underpinning this increase has been an estimated 16 per cent increase in sales transactions in Melbourne compared to the December quarter in 2011.
“Overall transaction numbers remain low in historical terms and that may cause some ongoing fluctuations, but if improvements in confidence continue 2013 will see improved activity and an increase in sale values,” he continued.