“We’ve all heard the ‘doom and gloom’ commentary about a downturn in Melbourne’s property market but the median house price has actually increased five percent in the past 12 months,” Ms Waters said.

“The property boom of 2017 could not be sustained and a leveling or correction of the market is a good thing in the context of housing affordability already being a pressing issue in Melbourne.

“Over the past 12 months, Regional Victoria has outperformed Melbourne with a 9.1 per cent increase in the median house price. In Outer Melbourne, the median house price rose 7.1 per cent and the unit median rose 9.8 percent.”

The REIV’s September quarterly data report revealed that the median house price in Melbourne remained unchanged at $834,000 and the unit median increased 0.2 percent (2.6 percent over the 12 months) to $640,000.

Properties are being tightly held in Inner Melbourne as vendors wait out this period while the market in Outer Melbourne is stronger as buyers are inclined to snap up more affordable options. There is no doubt that the banks’ tighter lending conditions are contributing to this trend as are incentives for first home buyers which encourage the purchase of affordable properties, more likely to be found in the Outer Melbourne suburbs.

This week’s sales include:

• 7/325 Thompsons Road, Templestowe Lower for $900,000
• 1360 Main Road, Eltham sold for $715,000
• 18 Harrow Street, Blackburn South sold for $910,000
• 3 Linford Close, Donvale
• 31 Oakland Drive, Warrandyte sold for $2,255,000
• 76 Wilsons Road, Doncaster sold for $1,119,000
• 22 Lynette Avenue, Warrandyte sold for $1,078,000

Currently under offer:

• 52 Glenair Street, Templestowe Lower
• 6 Martha Street, Donvale
• 6 Linford Close, Donvale
• 5 Harvell Court, Doncaster
• B15/170 Manningham Road, Bulleen
• 1 Lulworth Street, Blackburn North
• 28 Meredith Avenue, Templestowe
• 2/1A Souter Street, Eltham
• 69 McCubbin Street, Burwood
• 8 Jolen Court, Donvale