Melbourne Median House Price up 2.4 pc in June Quarter

Real estate in Melbourne enjoyed a modest price surge during the June 2013 quarter.

According to the Real Estate Institute of Victoria (REIV), the seasonally adjusted median house price in Victoria's capital rose by 2.4 per cent in the three months to June, compared to the March quarter.

This meant that the median price of a house in Melbourne was $562,000, up from $549,000 in the previous quarter.

The median unit price also recorded a positive change, ending the quarter up 2.8 per cent on $464,500 in seasonally adjusted terms.

REIV chief executive Enzo Raimondo said that the difference between this year and 2012 is that now there were more buyers active in the market. This, with other factors, is leading to price growth.

"Interest rates are low, consumer sentiment has improved, and clearance rates are higher," explained Mr Raimondo in a July 20 statement.

He added that with the spring selling season just around the corner, conditions were looking "very solid" for all parties over the coming months.

"Those considering buying or selling should take advantage of these improved conditions."

The REIV reported that demand continued to be healthy in suburbs that hovered around the median price point.

These included Craigieburn, Keysborough, South Morang and West Footscray.

Mr Raimondo suggests that part of the demand in these areas would have been fuelled by first home buyers getting in on the $7,000 First Home Owner Grant (FHOG) for existing homes, which was scrapped on June 30.

First time buyers in Victoria can now receive a grant of $10,000 for the purchase or construction of a new home, provided they fulfil eligibility criteria.

It wasn't just new homeowners getting in on the action during the June quarter, however, as the REIV noted that more expensive suburbs saw increased activity as well.

This included solid growth in prices in Glen Iris, Hawthorn East, Kew, Malvern East, Glen Waverley and Mount Waverley.

With winter progressing at a steady clip, the warm days of spring will be upon us before we know it.

Spring means new life in nature and in the real estate world too. Buyers will be out in force looking for their ideal property, and sellers will be busy ensuring their places are presented in the best possible light.

If you are planning on buying or selling later this year, start preparing now - you never know what the weather might bring!