Herron Todd White Opinion’s On The Melbourne Residential Market
· The Melbourne metropolitan market is currently considered two speed. The inner suburbs are generally outperforming the middle and outer suburbs where there is continuing evidence of softening prices.
· Auction clearance rates are now generally around 60%.
· According to the REIV statistics, the Melbourne residential market cycle peaked in 2010 with an increase in the median house price of approximately 18% from $465,000 in 2009 to median house price of $550,000 in 2010
· However the trend from 2010 to 2011 has shown a decrease of 1.8% to produce a median house price of $540,853.
· So far for the March quarter 2012 the median house price is $535,000 which shows a 0.9% increase on December quarter 2011 of $530,000.
· This shows the Melbourne residential market is remaining steady in the short term, mainly caused by a steadying in the population growth and an improvement in the supply of new homes.
· However consumer confidence continues to be low with weaknesses in Europe and a slowdown in China the main cause for concern with a cut to interest rates in July highly unlikely
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