$75,000 in three months – does this sound good?

Well, this definitely sound good for any property investors or home owners – it definitely a bad news for those who are looking to buy a property.

The Real Estate Institute of Victoria (REIV) says the cost of buying a home in Melbourne has shot up over $75,000 in three months to reach another record high.

The median house price in the city hit $540,500 at the end of 2009, the Real Estate Institute of Victoria (REIV) says in its December quarter update. The increase is about 15 per cent higher than the $470,000 average in September. This means if you bought a property at the median price of $470,000 in Melbourne in September 2009 and sold it in December 2009, you should be able to make a hefty profit (capital gain) of $75,000 in three months time.

The quarterly update places median Melbourne house prices above $500,000 for the first time.

Analysts attribute the rise to the unexpected quick recovery from the global financial crisis and a booming population that has seen about 1,700 new residents move to the city every week.

“Unfortunately, housing construction has not responded as quickly as would be necessary to ease the pressure in the market,” Enzo Raimondo, CEO of the REIV, said in a statement.

The biggest increases were recorded in Melbourne’s eastern suburbs.

Burwood shot up by over 23 per cent in the quarter, to $810,000 from $658,000, while Ringwood increased by about 16 per cent.

Apartments and units have also increased by 7.6 per cent to a median price of $441,000.

The most affordable homes are located in Melbourne’s far outer west. Werribee homes average $275,000, followed by Melton at $239,750.

Median house prices are the middle value of all real estate home sales recorded during the quarter.

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