If there was any proof still needed that house values in Victoria are rocketing upwards, then the latest figures from the Real Estate Institute of Victoria are it.
The REIV's December quarter report shows the biggest increase in the median house price since 2000, with the Melbourne metro median value racing past $900,000 for the first time, a jump of 9.5 per cent from the September quarter to $941,000.
Units in metro Melbourne achieved a median price of $639,500, 2.5 per cent higher than the September quarter and an annual increase of 3.8 per cent.
The trend was the same in regional Victoria which saw its highest quarterly growth since 2003. Houses achieved a median price of $485,500, recording a 9.2 per cent increase from the September quarter, and 7.5 per cent annual growth.
Regional unit prices recorded a 3.5 per cent quarterly increase and are now 10.3 per cent more valuable than they were 12 months ago.
After months of lockdown and harsh restrictions in Victoria to defeat the Coronavirus, buyers flooded the market in the December quarter resulting in 29,500 transactions, the highest number of quarterly transactions in 2020, surpassing the March quarter figure of 27,500.
KR Peters director Peter Nicolls wasn't surprised by the figures, which show a turbocharged market post Melbourne's second Covid wave.
"The shortage of stock is the prime reason the median price rose so sharply in the December quarter," Mr Nicolls explained.
"The lack of transactions for the first three quarters of 2020 created the pent up demand in the December quarter. Low interest rates and government stimulus incentives, like the HomeBuilder grant, acted as the catalyst for the property market's recovery.
"Home builders reaped the rewards with strong sales in new homes and renovations.”
He said the return of confidence and perceived strong leadership from both federal and state leaders aided the strong bounce back.
In good news for vendors, Mr Nicolls said he expected the strong growth to continue well into 2021.
"There is no reason why the median price does not reach record new heights in 2021. Low interest rates and construction demand will see property prices continue to soar over the next six months."