Melbourne house prices improved in the last month and with the anticipated RBA interest rate cut, housing affordability alarm bells have begun to ring.
Alarms have been raised by market analysts at RP Data and Rismark, whose combined Hedonic Home Value Index released yesterday revealed a $13,250 (2.5 per cent) increase in values on the price of a median, $530,000, house helped put our market $23,320 (4.4 per cent) ahead, year-on-year.
That growth follows predictions last week that Melbourne’s home values could return to peak levels by Christmas this year.
RP Data analyst Cameron Kusher said the figures were a mixed bag.
“It’s good news for people that own their homes, but not for those looking to buy for the first time,” Mr Kusher said
The growth in prices recorded was predominately lead by houses, with units recording more modest figures.
“It’s interesting to see that houses are really picking up, people seem to be going for houses rather than units,” Mr Kusher said.
Mr Kusher also noted an acceleration in growth in the coming three months is possible.
The growth in values is a response to positive conditions in our market and puts Melbourne slightly ahead of the national average, though behind market leaders Sydney and Perth.
Units were also buoyed by a slight increase, with a rise of $9,785 (1.1 per cent) recorded in the past month and $13,485 (3.1 per cent) year-on-year.
The current Melbourne median for units is now $435,000 and with improving conditions there has never been a better time to contact your mortgage broker to organise your finances