An influx of buyers in Melbourne has caused house prices to rise by more than five per cent in the March quarter.
The median house price in Melbourne was $561,500 in the March quarter following a 5.1 per cent increase from $534,000 in the previous quarter, according to the Real Estate Institute of Victoria (REIV).
REIV CEO Enzo Raimondo said that the Melbourne residential market continued to record moderate improvements as it recovered ground lost over the last two years.
“There was an increase in buyers in the December quarter, which has continued through the first quarter of this year with increased volumes, prices, and clearance rates," he said.
“Higher sales volumes were recorded with an estimated 66.4 per cent more than the March quarter last year.
“There are a number of factors increasing demand; increasing population growth, improved consumer confidence and overall affordability assisted by lower interest rates.
“High levels of residential construction, which have provided adequate supply, especially in the outer suburb housing market and inner-city apartment market will act to constrain price growth over the year.”
Mr Raimondo said demand for units was more subdued, but the median price still rose by 1.4 per cent.
“The strongest demand for units and apartments was found in Toorak, Kensington, Kew, Cheltenham, Boronia and Bayswater," he said.
“The overall improvements in the market are highlighted by changes in the clearance rate, which rose from 61 per cent in the March quarter last year to 62 per cent in the December quarter and 69 per cent in this March quarter.”