Trust your instinct or trust the statistics report.. the choice is up to me 
ABS confirms housing supply drives prices in 2009
17-Mar-2010
The ABS December quarter dwelling commencement figures confirm that the supply shortage has been the prime factor driving price growth and represents the biggest threat to affordability over the next five years.
REIV CEO Enzo Raimondo said that in the past five years Melbourne’s rate of population growth has increased by 84 per cent and according to the Australian Bureau of Statistics the number of dwelling commencements in Victoria has increased by 22.4 per cent (seasonally adjusted).
“There is no doubt that the mismatch between supply and demand, underpinned by increasing population, is driving house prices in Melbourne.
“The significant increase in the number of dwellings commenced is very welcome and if it continues for the next few quarters it will have a beneficial impact on affordability and prices.
“Today’s release of the REIV Annual Property Update for the 2009 calendar year shows that as the population has increased, so have house prices.
“Since 2006 the Melbourne median house price has grown by 23 per cent compared to four per cent for the period between 2003 and 2006.
“The supply shortage became particularly protracted last year, as the improving economy brought life back into the market. As a result six of the top 10 growth suburbs for the year had a median below half a million: Dallas, Broadmeadows, Sunshine North, Highton and Croydon North.
“It is also clear that the demand shortage is even more protracted in the unit and apartment market, as over the past five years the median price of a unit and apartment has grown by 37.9 per cent compared to 26.4 per cent for houses.
“More medium- and high-density housing, located in established areas, is required to meet the housing shortage and is in demand from buyers.
“The dwelling supply shortage is also evident in the rental market, which has now seen rising rents and a vacancy rate below three per cent for five years.
“Unless we continue to see increases in the number of homes that are being constructed home prices will continue to grow, making it significantly harder for home buyers and particular first home buyers,” Mr Raimondo concluded.
ABS confirms housing supply drives prices in 2009
17-Mar-2010
The ABS December quarter dwelling commencement figures confirm that the supply shortage has been the prime factor driving price growth and represents the biggest threat to affordability over the next five years.
REIV CEO Enzo Raimondo said that in the past five years Melbourne’s rate of population growth has increased by 84 per cent and according to the Australian Bureau of Statistics the number of dwelling commencements in Victoria has increased by 22.4 per cent (seasonally adjusted).
“There is no doubt that the mismatch between supply and demand, underpinned by increasing population, is driving house prices in Melbourne.
“The significant increase in the number of dwellings commenced is very welcome and if it continues for the next few quarters it will have a beneficial impact on affordability and prices.
“Today’s release of the REIV Annual Property Update for the 2009 calendar year shows that as the population has increased, so have house prices.
“Since 2006 the Melbourne median house price has grown by 23 per cent compared to four per cent for the period between 2003 and 2006.
“The supply shortage became particularly protracted last year, as the improving economy brought life back into the market. As a result six of the top 10 growth suburbs for the year had a median below half a million: Dallas, Broadmeadows, Sunshine North, Highton and Croydon North.
“It is also clear that the demand shortage is even more protracted in the unit and apartment market, as over the past five years the median price of a unit and apartment has grown by 37.9 per cent compared to 26.4 per cent for houses.
“More medium- and high-density housing, located in established areas, is required to meet the housing shortage and is in demand from buyers.
“The dwelling supply shortage is also evident in the rental market, which has now seen rising rents and a vacancy rate below three per cent for five years.
“Unless we continue to see increases in the number of homes that are being constructed home prices will continue to grow, making it significantly harder for home buyers and particular first home buyers,” Mr Raimondo concluded.
