Snapshot of the market

Data from the Real Estate Institute of Victoria (REIV) shows that the median house price of a Melbourne house increased by 5.4% - up from $560,000 to $590,000 - in the June quarter.

In regional Victoria the median house price rose by $5,000 to $325,000, an increase of 1.6%. But despite the recent moderate growth in house values the market could be best described as balanced, providing neither buyers nor sellers with any clear advantage. Headline auction clearance rates have remained around the 55-60% for much of the year; a figure which is substantially lower than the average recorded during 2010.

However the percentage of properties reported sold on the day does not always to convey the bigger picture. Well presented homes are continuing to attract buyer interest but vendors need to be mindful that values have generally come off their highs of the first half of 2010 and set their price expectations in accordance with current conditions. When setting the selling price or auction reserve vendors should be guided by the selling agents knowledge of recent local sales and the level of competitions from comparable properties in the area. Prices achieved for the house across the road or in the next street during last year's heady conditions are not necessarily reflective of today's market, especially in the higher price ranges. People who are looking to upgrade their home shouldn't be put off but the current market as they need to remember that they are both buying and selling under the same market conditions.