Friday 16th April, 2021 - New figures out today show a surge in Melbourne house prices for the March quarter of 2021 with an increase of 8.8%. According to the REIV (Real Estate Institute of Victoria) this increase brings the median house price in Melbourne to above one million dollars for the first time in history.
The 8.8% increase is the Melbourne property market’s largest quarterly increase since December 2009, with buyer demand across the city soaring. Regional Victoria also broke records with median property prices passing $500,000 for the first time. Regional Victoria has seen continued growth of up to 12.3% in property prices over the last 12 months.
The revival of Melbourne’s property market, which was one of the worst affected by COVID lockdowns, has been bolstered by the easing of COVID restrictions, generous government incentives for first home buyers, and record low-interest rates.
The feverish demand in Victoria follows similar demand across the nation with Corelogic’s Quarterly Auction Market Review, released earlier in the week, revealing a combined auction clearance rate of 80% over the first quarter of this year. This was up from 69.4% in the December quarter of 2020 and 62.5% in March 2020.
According to Corelogic, the weekly auction clearance rates across the combined capitals has been 80% + just five times since 2008 with four of those being in March 2021. (Source)
CoreLogic’s Head of Research Australia, Eliza Owen noted that the strength in auction clearance rates through the March quarter support the rise in demand seen across the market more broadly. Dwelling values in the combined capital cities are up 5.6%, reflecting the fastest rise in the National Home Value Index in 32 years. (Source)
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