fewer properties being listed will me less revenue and lower profits.
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Urban house prices fall April 26, 2008 01:06pm Article from: AAPFont size: + - Send this article: Print Email RECENT interest rate rises are biting into Melbourne's housing market.
Figures released today by the Real Estate Institute of Victoria (REIV) show the median price for a detached Melbourne home in the March quarter was $432,500, down 8.4 per cent from the December 2007 median of $472,250.
REIV CEO Enzo Raimondo said a number of factors had contributed to a cooling of the market since the beginning of 2008.
"Increasing interest rates, coupled with the changing economic conditions, have affected confidence, transaction numbers and clearance rates," Mr Raimondo said.
The greatest impact was seen in Melbourne's most expensive suburbs during the quarter, according to Mr Raimondo.
"This is highlighted by the fact that most of the suburbs with the highest growth rates (in median prices) for the quarter are not in the inner city," Mr Raimondo said.
Among suburbs that recorded at least 30 sales, strong increases in median price were seen in Blairgowrie (up 18.4 per cent) and Berwick (13.6 per cent).
There were also increases in regional Victoria, including Ballarat and Bendigo.
The steepest falls were seen at Wyndham Vale (down 11.7 per cent) and Essendon (down nine per cent).
Despite a drop in prices overall, Mr Raimondo said the first three months of 2008 have seen the residential market "return to a stable and sustainable level".
The figures show Brighton, with a median price of $1.68 million, is Melbourne's most expensive suburb, and Melton the most affordable with $211,000.
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