PHOTO: Kacper Hubik and Nikolina Trajkovski in the lounge of their new home. Photo: Stephen McKenzie

The Melbourne housing market’s quickest price recovery ever is disheartening for first-home buyers who had hoped for prices to stay at lower levels seen during the recent downturn, economists say.

And real estate agents warn that the fear of missing out, common during the property boom over the five years to 2017 when prices were soaring, could take hold of buyers again

Melbourne’s median house price jumped 4.1 per cent in just three months, reaching $855,428, the Domain House Price Report for the September quarter released this week shows.

Median house prices, capital cities

Sydney$1,079,491 4.8% -1.6%
Melbourne$855,428 4.1% 0%
Brisbane$562,847 -1% -1.8%
Adelaide$538,550 -0.6% 0.7%
Canberra$738,864 -0.7% 0.6%
Perth$527,107 -1% -2.4%
Hobart$482,960 1.3% 2.6%
Darwin$521,651 1% -4.4%
National$773,635 2.7% -1%
Source: Domain House Price Report, September quarter 2019