House prices fall in Melbourne * November 1, 2008 - 10:45AMThe...

House prices fall in Melbourne

* November 1, 2008 - 10:45AM

The median price of a house in Melbourne declined by 3.3 per cent in the September quarter, the Real Estate Institute of Victoria reported today.

REIV CEO Enzo Raimondo said the drop was the result of the "most difficult external economic climate'' witnessed for many years.

The median house price in Melbourne was $435,000, down from $450,000 in the June quarter, according to the REIV September quarter median property values report.

Mr Raimondo said the economic climate was having the strongest impact on the most expensive suburbs and the least in the most affordable areas.

"Overall, the local housing market is the most volatile it has been for many years,'' Mr Raimondo said.

"We have seen auction clearance rates vary by over 10 per cent over a month.''

Victorian opposition treasury spokesman Kim Wells called on the government to provide "real and meaningful'' stamp duty relief to home buyers at a time when housing affordability remained low.

Victoria had the second highest stamp duties of all the states, with only South Australia being worse off, he said.

"At a time when housing affordability remains at close to record lows in Victoria ... the Brumby Labor government's spin and rhetoric on the issue of housing affordability sounds increasingly hollow,'' Mr Wells said.

http://www.theage.com.au/national/house-prices-fall-in-melbourne-20081101-5fpl.html