Sellers are demanding a $1 million price tag for their homes, with the median asking price now reaching record levels.
The figure, $1,000,300 from all currently advertised properties, marks a surge of 27.8 per cent from the same time last year, according to SQM Research.
It comes amid tighter stock levels across the traditionally quiet Christmas and New Year period, with 28,895 residential properties listed in Melbourne in December.
That’s a decline of 10.3 per cent on the same time last year and 12.6 per cent from November.
The median asking price for Melbourne units was $528,100 for the week ending January 2 — a 15 per cent annual rise.
SQM Research managing director Louis Christopher said the group predicted property price growth of 7-12 per cent in Melbourne this year and the city’s listings to grow in 2018.
“We’re still relatively positive on Melbourne because of the very strong population rates the city is experiencing now, which, combined with a booming local economy, is assisting the housing market in terms of recording rising prices and numbers vendors can feel very confident about.”
Mr Christopher said Melbourne’s stock levels could be boosted by vendors motivated to sell by signs of a slight slow down in the market.
“The market may well slow down in the first half of the year but we don’t think it’s going to last for the full year,” he said.
Australia’s median house asking price rose 11.3 per cent year-on-year to $567,800, while the median unit asking price rose 7.9 per cent to $374,500 for the week ending January 2.