The Chief Executive Officer of the Real Estate Institute of Victoria (REIV), Enzo Raimondo, has welcomed the release of the ABS June House Price Index, which confirms that the Melbourne residential property market continues to appreciate in value.

“The ABS index suggests a 5.5 per cent increase in house prices. This is stronger than the results reported by the REIV, which showed a 4.2 per cent increase over the previous 12 months.

“The first interest rate increase in May this year had little or no effect on the volume of transactions and house prices. However, the second rise in August will affect first home buyers and families struggling to pay their current mortgage payments.

“Young families and first home buyers are facing an affordability crisis as interest rates increase and appreciation in property prices continue to affect their ability to enter the home market.

“It is time that both Federal and State Governments took appropriate and consistent measures to ensure families are able to obtain what we consider to be a fundamental necessity,” Mr Raimondo said.