According to data released from the Real Estate Institute of Victoria, the Melbourne median house price fell two percent in the March quarter. This comes amid claims the market was glowing white [hot].
On Tuesday this week, the Sydney Morning Herald said buyers were retreating from the Melbourne property market at a rate of 600 a month, causing real estate professionals to predict an “exhausted market”.
On Wednesday, Westpac Boss, Gail Kelly joined the growing group of senior bankers warning of an overheated property sector. “It seems things are just a little bit too hot in Melbourne just at the moment, but I suspect that will moderate in a rising interest rate environment.”
Despite the overheating market, the Real Estate Institute of Victoria has this week called for the First Home Buyers Boost to be re-introduced and even increased.
» Housing market to weaken as buyers retreat – The Sydney Morning Herald, 13th April 2010.
» Property too hot in southern city, says Gail Kelly – The Australian, 14th April 2010.