Victoria house prices sunk by economic tides

House prices in Victoria have tanked in the last six months, new property data shows.

Figures obtained by the Herald Sun have shown that in the second half of 2008, the total value of property in the state has shrunk by $40 billion, with average house prices down $22,500 at $427,500.

However, while homeowners are surely awaiting the signs of a recovery with bated breath, the paper concedes that the drop in the market has offered an excellent opportunity for first-home buyers looking to get their foot on the ladder.

“The expected decline in prices will help address the chronic problem of housing being unaffordable for a lot of Australians and first-time buyers are likely to be enticed back into the market,” said Mortgage and Finance Association real estate guru Phil Naylor.

And for those first-home buyers keen to get in on the low prices, it might be an idea to have a look around coastal towns after the Australian identified these as this year’s likely real estate hotspots.ADNFCR-1761-ID-18963910-ADNFCR