Melbourne’s median house price has risen for the first time in 18 months, reflecting growing sentiment that the market downturn is over.
Domain’s House Price Report for the June quarter shows Melbourne’s median house price rose 0.3 per cent to $818,237.
Domain’s Trent Wiltshire said on their website that the figures show Melbourne’s property market was turning.
“More buyers are attending open for inspections, sentiment has improved and auction clearance rates are at the highest point since November 2017,” he said.
The property market has seen an increase in activity from buyers since the surprise Liberal federal election win and back-to-back interest rate cuts from the RBA.
The Commonwealth Bank thinks house prices will rise by around 2 per cent over the second half of the year.
Mr Wilshire says the rise in prices will start in the inner suburbs and work its way to the outer regions.
“I think for the next few quarters we should see a modest price growth – maybe some quarterly fluctuation – but this is a clear sign that the market in Melbourne has bottomed out,” he said.
Ray White Victoria chief auctioneer Matthew Condon said both owner-occupier and investor bidders were returning to auctions.
He told Domain that more people were now bidding above reserve to buy under the hammer instead of waiting for the property to pass in and then negotiate after the sale.
Capital city median house prices
City Median house price
Sydney $1,032,338
Melbourne $818,237
Brisbane $559,167
Adelaide $540,473
Perth $528,186
Hobart $474,423
Canberra $741,947
Darwin $502,521
