House Prices Show Moderate Rise in March
The REIV’s April Research Bulletin reveals an increase in the Melbourne House Price Index (HPI) of 0.9 per cent and a 1.1 per cent rise in the Unit Price Index (UPI) in the month of March.
REIV CEO Enzo Raimondo said that this represented the sixth month in a row in which the House Price Index has increased providing another clear indication of an improving residential market.
“Over the past six months the REIV’s HPI has risen 3.2 points from 135.8 to 139.
“This recovers some of the value lost in prices over the past two years but they still remain below their peak of 144.8 in April 2011.
“It is important to note that this recovery is mild when compared to the last cycle when the first six months of consecutive improvement saw an 8.8 point rise from 111.2 to 120 between July and December 2009.
“There are a few reasons why the improvement is mild this time. The rise in consumer confidence is more subdued than in 2009 and there are much higher levels of supply which translates into less unmet demand and there is less stimulus from governments.
“As a result it is likely to be more sustainable, which is better for those seeking to buy over the remainder of autumn and into winter.
“The REIV will release its update on median prices in Victorian suburbs and towns in around two weeks,” Mr Raimondo concluded.