Core Insights - Melbourne's housing prices have begun to rise again, creating pressure for potential buyers who were hoping to enter the market during its downturn [1][4] - The median price for detached houses in Melbourne reached AUD 1,035,887 in Q1 2025, an increase of approximately AUD 16,000 over the past six months, although it remains about AUD 14,000 cheaper than a year ago [1][2] - The overall market sentiment indicates a potential rebound, driven by a decrease in interest rates and increased buyer inquiries compared to the previous year [4][11] Price Trends - In Q1 2025, the median price for detached houses in Melbourne increased by 0.3% from the previous quarter but decreased by 1.3% year-on-year [2] - The most significant price increases were observed in high-value suburbs, with the Inner East region seeing a 6.7% rise to AUD 1,780,000, and the Inner Melbourne area rising by 3.3% to AUD 1,395,000 [5][4] - Conversely, the apartment market in Melbourne experienced a decline, with the median price dropping by 3.2% to AUD 550,022 [7] Buyer Behavior - Increased buyer activity has been noted, with many buyers entering the market in anticipation of potential interest rate cuts [4][11] - The scarcity of quality listings has intensified competition among buyers, leading to frustration for those looking to purchase homes [9][11] - The sentiment among buyers reflects a desire to secure properties before further price increases, although there is currently no widespread "fear of missing out" [7][4] Economic Context - National wage growth of 3.2% over the past year has become a significant topic in the context of the upcoming elections, potentially influencing housing market dynamics [4] - The market's response to interest rate changes has been particularly pronounced in Melbourne, which is perceived as offering better value compared to other capital cities in Australia [11]