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Improvement in Victorian market

The Victorian residential market has continued to record moderate improvements as it recovers ground lost over the past two years, according to the Real Estate Institute of Victoria (REIV).

The median house price in regional Victoria was $311,500 (seasonally adjusted) in the March quarter following a 2.1 per cent increase from $305,000 (seasonally adjusted) in the previous quarter.

REIV CEO Enzo Raimondo said it is clear that the residential housing market is slowly improving.

“There was an increase in buyers in the December quarter, which has continued through the first quarter of this year with increased volumes, prices, and clearance rates,” Mr Raimondo said.

“There are a number of factors increasing demand; increasing population growth, improved consumer confidence and overall affordability assisted by lower interest rates.

“Median prices increased by 3.2 per cent in Bendigo to reach $320,000, contrasting against a drop of 3.4 per cent to $280,000 in Ballarat and a 1.3 per cent drop in Geelong to $390,000.

“Some centres continue to have short-term fluctuations but the underlying trend is positive.

“The rental vacancy rate tightened over the quarter from 3.6 per cent in January to 3.3 per cent in March with the lowest level of vacancies in the Wimmera and Albury/Wodonga,” Mr Raimondo concluded.

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