balkanghost

"‘A Guide to Property Values 2012’ by Victoria’s Valuer General was released July 5.

It has been comprehensively ignored.

The report dissects property transfers and prices lodged with the titles office. This dataset is the actuals, the definitive historical record, and is what scholars of the future will use to examine The Great Australian Land Bubble.

Let us look at what has actually happened.

“The property market in Victoria showed an overall downward trend during 2012”, says Robert Marsh Victorian Valuer General."

From Macro Business 'The real word on Melbourne house prices'

OzTennis

And more recently than this the median has risen but the outlook for the next few years is for very modest rises:

http://www.news.com.au/realestate/re...-1226672197360

MELBOURNE'S median house price leapt 4 per cent in the past financial year on the back of record low interest rates.

At the end of June, the median price in Melbourne was $545,000.

It created some relief for homeowners who saw property values fall by a median 7 per cent in the 2011-12 financial year.

balkanghost

Curious they quote BIS report but not the data sources?

Most Macrobusiness contributors make much of the fact that mainstream media are still spruiking (while many economic indicators are negative), ..... especially Fairfax (SMH/The Age) and 'indices' developed by real estate agents in cahoots with same media, are opaque.... or don't seem capable of recording falls....better get in now

In fact a rising median (on high levels of stock and lower turnover of properties) could suggest mid to upper end properties are selling at lower prices, which can end up increasing the median (if lower end sales are less frequent), as mid upper becomes mid range, I think? (of course most data in mainstream is not explained or defined well).

Or, as explained somewhere else, if real estate agents target for heavy promotion and sale only or mostly properties above the median, that will increase the median, especially with lower turnover or sales (compared with past years),

Another relatively objective source is SQM Research who monitor stock on market for postcodes, regions etc., Melbourne stock has doubled from about 25k to near 50k in less than four years (this is only stock publicly for sale).