Capital City Median House Prices Flat During March Quarter

Median house prices fell slightly on average across capital cities during the March 2013 quarter, according to a report from Bendigo Bank and the Real Estate Institute of Australia (REIA).

The weighted average median house price for the eight cities fell by 0.2 per cent during that period, to finish at $534,015.

While this may be welcome news to those in the hunt for affordable property in Australia's busy city real estate markets, it may also raise a few eyebrows among those looking for a pick-up in the residential property sector.

Most obviously, this includes sellers and those in the construction sector hoping for demand for new houses to increase.

REIA president Peter Bushby said in a June 12 statement that indeed, while Sydney, Perth and Darwin weighted average median house prices went up during the first three months of 2013, the overall capital cities figure was pulled down by decreases in Brisbane, Melbourne and Adelaide.

"However, compared to the same time last year, the figures are positive as the Australian weighted average median house price rose four per cent and with the exception of Canberra which fell 7.2 per cent, prices increased in all capital cities," said Mr Bushby.

At the head of the pack was Darwin, with an increase of 7.6 per cent. Melbourne was similarly impressive, with the median house price there rising by 4.8 per cent.

As for median rental prices, these rose across all capital cities during the March quarter.

Sydney had the lowest vacancy rate at 1.8 per cent and Hobart the highest at 4.9 per cent.

While median house and rental prices are just some indicators in a sea of other statistics, they can nonetheless be a useful resource for buyers, investors and sellers when learning about property in a specific region.

Being the middle sale price of all properties sold during a given period in a set location, the median figure is less apt to be skewed by a disproportionate number of high or low-priced properties being part of the sample set.

Finding out the median house price in different markets can be a useful way to determine where you can afford to buy property.

For investors, looking at median house price and rental figures over time is one way of gauging market trends, tenant demand and the possibility of making capital gains in the short or long-term.