The REIV has released the December quarter median prices, revealing that the median price of a house in Melbourne has increased by 6.9 per cent to $601,500 from a revised $562,500 in the September quarter.
REIV CEO Enzo Raimondo said this was the first time that the median house price had exceeded $600,000 and it was clear that housing affordability would be a key issue this year for buyers and the Victorian community.
"Increased house prices in the last quarter and over the last two years are due to an imbalance between housing supply and the needs of our growing population.
"This is a systemic problem with the local market and steps need to be taken to increase supply over the medium-term to ensure it is not further diminished in the future.
"With a full analysis of the sales results from last year's spring selling season, it is clear that prices buyers are willing to pay increased substantially compared to the winter months.
"Low weekly auction clearance rates did not result in reduced prices for the homes that sold and demand for homes sold by private sale outstripped those at auction.
"Million dollar suburbs Canterbury, Hawthorn and Kew recorded the largest increase in their median house price over the quarter and strong increases were also found in the more affordable suburbs of Seaford, Langwarrin, Epping, Cranbourne and Tarneit," Mr. Raimondo concluded.