Market Update September Quarter 2011

31 Oct 2011 - Paul Kounnas from http://hudsonbond.com.au

As anticipated, house prices across Melbourne fell in the September quarter. According to the latest figures by the REIV, the median price for a house is now $551,000, down from the revised June figure of $567,000. This represents an average drop across Melbourne of 2.8%.

While the global economic uncertainty persists, consumer confidence will remain low, so I would expect the housing market to generally continue with its current weakness. Some sections of the market may fall further in value while others may rise yet many will just remain flat.

This latest release of housing data does not represent a collapse of our housing market as the headlines over the last few months would have you believe. The market, in many but not all areas, is simply going through a correction.

According to the latest figures many outer suburbs of Melbourne, particularly those with average prices below the Melbourne median, recorded positive growth. Most of the expensive inner suburbs however recorded negative growth, with the exception of just a few suburbs such a Hawthorn and Balwyn which recorded positive gains.

In our area only Bulleen and Doncaster East had a positive result for the quarter while Donvale and Warrandyte recorded the biggest negative swing in prices.