Regional house prices hit high mark

THE median house price in Victoria has recorded its one of its largest quarterly increases, according to data from Real Estate Institute of Victoria’s quarterly March report.

For the first time, homes in regional Victoria surpassed $500,000 and achieved a record quarterly median price of $510,500 with a 4.1 per cent increase from the December quarter, and 12.3 per cent annual growth.

Meanwhile regional unit prices recorded a 5.9 per cent quarterly increase, they are now 19.1 per cent more valuable than they were 12 months ago, sitting at $383,500.

REIV President Leah Calnan said she expects the market will gradually begin to settle as life returns to normal following a tumultuous 2020.

“Market statistics show unprecedented levels of buyer interest across Victoria,” she said. “Sellers and buyers didn’t waste any time getting active in the market.”

The REVI uses median prices rather than average prices because medians are unaffected by a few unusually high or low prices, making them a more accurate indicator of true market activity.

Houses in metro Melbourne surpassed a median value of $1 million, jumping by 8.8 per cent from the previous quarter to land at $1,004,500.

Metropolitan Melbourne recorded the highest quarterly increase for houses since December quarter 2009.

Units in metro Melbourne achieved a median price of $672,500, 4.8 per cent higher than the December quarter and an annual increase of 3.4 per cent.

With people spending more time at home than ever throughout last year, families took the opportunity coming out of lockdown to upgrade their home.

This benefited house prices in middle Melbourne, the typical suburban family belt, which increased by 6.9 per cent from December to reach $1,148,500.

“House prices have been boosted by incentives for First Home Buyers, mortgage repayment holidays, and low interest rates,” Ms Calnan said.

“High demand across the state has also been fuelled by an increase in activity following Victoria’s lockdowns which saw thousands of auctions cancelled.”