With plenty of positivity in the market right now and a shortage of listings, buyers are competing hard against each other, resulting in record prices in many instances. 

Should the volume of properties increase, this could slow the market down and stabilise prices – resulting in a run-off effect of supply and demand. 

According to Real Estate Institute of Victoria (REIV) March 2021 quarterly results, the median house price in Victoria recorded one of its most significant quarterly increases.
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- Melbourne metropolitan houses reached record median value: $1,004,500
- Houses in middle Melbourne reached record median value: $1,148,500
- Regional Victorian houses reached record median value: $510,500

The peak representative body for real estate agents in Victoria found that for the first time in a long time, houses in metro Melbourne surpassed a median value of $1m jumping by 8.8 per cent from the previous quarter to settle at $1,004,500.

Metropolitan Melbourne recorded the highest quarterly increase for houses in the last 11-12 years. Could it be with COVID-19 and families bunkered down, that much of 2020 became an ideal time to upgrade homes, adding serious value to properties? 

House prices in middle Melbourne, the typical suburban family belt, increased by 6.9 per cent from the December quarter to reach $1,148,500. While in regional Victoria, houses exceeded $500,000 for the first time and achieved a record quarterly median price of $510,500 with a 4.1 per cent increase since the December quarter and 12.3 per cent annual growth. 

Regional area units stood out, recording a 5.9 per cent quarterly increase, so they are now 19.1 per cent more valuable than they were 12 months ago. Who knew a pandemic could have such strangely hidden benefits, as supply and demand continued to take effect?

Units in metro Melbourne achieved a median price of $672,500, 4.8 per cent higher than the December quarter and an annual increase of 3.4 per cent!

Like bears waking from hibernation, Victorians became super active following lockdown lifts, evident by the estimated 35,000 transactions in the March quarter – the highest in the first quarter of the year since March 2015.

REIV President, Leah Calnan, explains that unparalleled levels of buyer interest across Victoria are due directly to“incentives for first-home buyers, mortgage repayment holidays, and low-interest rates”. 

It could also be due to high demand across the state resulting from an increase in activity following Victoria’s lockdowns, with buyers rebounding after the absence of traditional auctions for some time. 

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