PRDnationwide Research Analyst, Angus McLean said a price point analysis undertaken for the Mildura Area house market has an increase in the sale of homes between the $100,000- $199,999 price range (9 per cent increase from October 2011).

"This explains the current decrease in median price likely to continue in the short term as buyers maintain appetite for well-priced entry level property and target heavy price discounts from the higher end."

Mr McLean said the absorption of the Mildura Area housing stock should continue into 2013 as buyers indicate increased activity spurred by successive interest rate cuts and the Victorian government's stamp duty discount being increased to 30 per cent (from 20 per cent) as of January 1, 2013.

"These incentives will provide the Mildura Area house market a solid base to see another positive shift in sales and median price toward the end of 2013."

According to Mr McLean, the median price in Mildura Area for vacant land has remained steady since 2006, peaking again in October 2012 at $85,000.

"The current trend toward smaller and more affordable housing has led to a flattening in median price, however added incentives for home buyers and a strengthening environment for developers and buyers alike will see the Mildura Area increase again in vacant land sales into 2013," he said.

Mr McLean said the October 2012 period has seen a marked increase in the proportion of unit sales between $100,000-140,000, accounting for 17 per cent increase in sales since April 2012.

"There has also been a contraction in purchasing activity in the $140,000-180,000 market (showing a 19 per cent decrease of total sales) which together has led to an acute correction in the median price back to $137,757," he said.

"The Mildura Area may now see some shift on the back of strengthening unit rental market and strong shift towards a more affordable product; this will lead to an increase in gross rental yield in turn increase investment into the Mildura Area unit market."

Principal of PRDnationwide Mildura, Richard Wyatt, said the office's move into the Mildura market has been both rewarding and exciting with a clear return of confidence from both owner occupiers and investors into the region.

"We expect this confidence to continue to grow throughout 2013 as interest rates remain at near record lows and housing affordability in Mildura is amongst the best of any major regional centre in Victoria," he said.

According To Mr Wyatt, the level of buyer enquiry has increased significantly over the previous four months with more homes needed to satisfy this demand.

"If you are considering selling, now is the time to take advantage of the imbalance between supply and demand with a number of our clients enjoying multiple offers and excellent prices for their property."

Media contact:
Kerry McDuling
P: 0410 578 194
E: kerrymcduling@prd.com.au