The Real Estate Institute of Victoria has just released their June quarter median house prices. The data shows that the median price of a house in Melbourne has remained steady at $535,000.

REIV CEO Enzo Raimondo echoes industry sentiment by saying both buyers and sellers are approaching the market in a conservative manner. This caution is translating into a lower number of sales than we've seen previously in stronger markets and as has resulted in no real price growth since the beginning of 2012.

Healthy demand was recorded, however, in suburbs such as Langwarrin, Cheltenham, Newport, Pakenham and Reservoir. Of those Pakenham is the only one where values are almost at an all time high. Demand in both Balwyn and Malvern East has also strongly improved and values are now almost at the peak recorded in 2010, according to the REIV !gures.

A recent history of Melbourne's median house and apartment prices shows the negative impact of the GFC towards the end of 2008 and the rapid recovery in 2009.. The market peaked in late 2010 and in the last year prices have generally remained stable.

Melbourne's overall rental vacancy rate was 2% in the June quarter, which was a reduction on the 2.2% recorded in the March quarter. This still showed improvement in the availability of rental homes compared to a year ago, when the vacancy rate was down at 1.8%.