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Melbourne home prices record 27% annual growth

New data just released show that in the 2010 March quarter, Melbourne home prices increased by 6.8% and marked an annual gain of 27%; according to figures from Australian Property Monitors (APM). This is the highest since 1995.

Overall nationally, in the year to the March 2010 quarter, national prices rose 16.2% (the highest in six years), with Melbourne the real standout.

APM economist Matt Bell says he expects home prices to increase 8 to 10 per cent in 2010.

Strong population growth, rising incomes, a chronic shortage of affordable housing and a strengthening employment market will combine to keep house prices in positive territory in 2010, Mr. Bell predicted.