Melbourne Property Market Strong reports REIV
REIV reports on 11 May 2008, data shows that despite the recent reduction in the median price of a home in Melbourne the last twelve months were the strongest in 10 years.
In the twelve months to the march quarter the median price of a home increased by 14 per cent or $54,500 from $378,000 to $432,500. This period of rapid escalation in demand surpassed, in 12 months, the gains over four years between March 2003 to March 2007 when the median increased by 10 per cent or $33,000 from $345,000 to $378,000.
Analysis of the historical data also shows that the median price of a home in 1998 was $186,000.
The underlying strength of the local housing market is underscored by the Australian Bureau of Statistics which in its March index of capital city prices showed that the weighted average of a house in Melbourne increased by 25.9 per cent, the highest of any capital city. Second was Adelaide at 21.6 per cent and third was Brisbane at 20.8 per cent.
The primary driver behind this growth has been population growth.
This is good news for most homeowners and investors as in the majority of cases an investment in bricks and mortar is a longer term one. Homeowners will monitor changes in value over the short term but the true comparison is between what they first paid, what the value is when they sell and importantly, the price of the home that they subsequently purchase.
(Source: REIV 11-May-2008, News Section, Web)
