Melbourne home values crash in 2011

Melbourne's median house price has lost $50,000 this year after peaking at $601,000 last December – an 8.3 per cent drop according to the Real Estate Institute of Victoria's quarterly reports. South Yarra has taken the biggest hit, with the median house price diving 25 per cent. Clayton, Hughesdale, Ashburton, Heidelberg West and Mont Albert North have also recorded steeper-than-average price dips.

The biggest price falls have generally happened in top-end, inner-city suburbs while the outer suburbs are withstanding the downturn. The median house price in postcodes within 10km of the CBD is down 3.3 per cent over 12-months. Middle-ring suburbs – 10 to 20km from the CBD – are down 1.6 per cent, while prices in the outer suburbs have held their ground.

The correction comes after several years of above-average growth, with prices rising 50 per cent between 2007 and 2010.

Source: Herald Sun