SOME of Melbourne’s hottest suburbs have seen average house prices skyrocket by more than $500,000 in a year.
Undoubtedly much of the increase is an adjustment to the price after the property price decreases experienced in late 2008 and early 2009.
Home owners in country town Ouyen and trendy St Kilda were the biggest movers, with median house prices increasing by more than 50 per cent in the 12 months to last September.
And home owners in Armadale saw their average prices increase by about $510,000 in one year.
Median house prices across Melbourne rose 3.7 per cent in the September quarter last year.
Figures released by the Valuer-General show the median house price in metropolitan Melbourne increased from $405,000 to $420,000.
The average price for units in Victoria increased 5.1 per cent to $362,500, after a 7.8 per cent rise in the previous quarter.
The median price of a unit in Victoria was greater than the median house price, which also increased by 3.3 per cent from $335,000 to $360,000 in the September quarter.
Such property price movements has been a contributing factor to RBA increasing the interest rates earlier this week.