House price pressure in Victoria is easing as the gap between supply and demand narrows.
A report from the Federal Government's National Housing Supply Council has indicated that the gap between underlying supply and demand in Victoria has narrowed from 18,000 in 2009 to 10,000 in 2011. REIV chief executive Enzo Raimondo said the narrowing gap between supply and demand was partly responsible for house prices easing in the state.
"Whilst the market is also affected by a range of other factors - the rate of economic growth, unemployment, interest rates and levels of consumer confidence - if there is a shortage of stock, this also results in pressure on prices," Raimondo said.
Raimondo said the report has indicated Victoria will not face a "critical undersupply" of housing in the near future.
House prices have continued to decline in Victoria, with May figures from RP Data showing median values fell 2.7% for Melbourne over the month.
House prices headed south