Melbourne home values recorded a 10th straight month of decline in January, down 0.6% to be 3.3% lower over the past 12 months. Since peaking in March of 2022, Melbourne home values have now fallen by a cumulative 6.9% or approximately 58,000 in dollar terms.
The 2% in values over the past three months is the largest rolling quarterly fall since three months ending January of 2023. Advertised supply levels remain elevated across Melbourne, with listings tracking 6% above the previous five year average and roughly on par with levels recorded at the same time last year.
Melbourne house prices graph
With high stock levels, the median number of days it takes to sell a property is lifted further to 44 days compared with the median of 39 days a year ago.
Melbourne house prices – the longer-term data
CoreLogic’s data shows how prices in the Melbourne property market have surged and fallen over the longer term, and the extreme dwelling value changes over the past few years in particular.
As you can see on the chart, Melbourne enjoyed an uptick in property prices in 2021, but the surge reached nowhere close to what was experienced in other combined capitals.
Likewise, today’s uptick falls short of the recovery seen in other cities.
But, looking back even further over the last 30 years, Melbourne house prices are up 459% (5.9% per annum), which is the highest long-term growth rate of any capital city.
The earliest decade (1992-2002) recorded the strongest housing market conditions, with dwelling values up 95%, compared with a 69% rise through both the middle decade and the most recent decade.
House values have risen more than unit values over the 30-year period, with the 519% gain equating to a dollar value increase of approximately $809,140.
By comparison, house prices rose 389% in Brisbane and 507% in Sydney over the same 30-year period.
Meanwhile, Melbourne’s unit values are 354% higher, providing a $479,060 increase in approximate dollar terms.
Houses located within the Yarra SA3 region have recorded the highest long-term capital gain, ranking in the top growth position nationally with a rise of 779% in house values over the past three decades, equating to an approximate dollar value gain of $1,405,850.
