By Vanessa Chircop
WILLIAMSTOWN was named seventh highest growth suburb for 2011 with an annual increase in median house prices of 5.7 per cent.
Latest figures from the Real Estate Institute of Victoria (REIV) show Williamstown’s median house price going against Melbourne’s trend with median house prices falling by 5.2 per cent.
The median house price in metropolitan Melbourne was $550,000, representing a minor increase of 1.9 per cent since September.
Williamstown’s median house prices bumped up to $905,000 representing an increase of 2.5 per cent.
Altona also saw a slight increase of 4.4 per cent bringing the median house price to $567,500.
But Altona and Williamstown were the only two Hobsons Bay suburbs that bucked the Melbourne trend with Laverton, Newport, Altona Meadows, Altona North prices all seeing a decrease in the last quarter.
REIV CEO Enzo Raimondo said that demand in the local residential market improved marginally from the previous quarter, as did housing affordability, due to the two interest rate cuts. However, transaction numbers were significantly lower than for the same time the previous year.
Feedback from REIV Members during the December quarter was that buyers were not as willing to buy and sellers not as anxious to sell as they hold out for an improvement in conditions.
“As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions.
“The REIV does not predict any significant change in the market during the March quarter as it is generally the quarter with the least activity, however we are starting to see signs that the market may have bottomed in 2011and, if there are improvements in economic conditions, we may see an improvement in transaction activity from the second quarter of this year.”
