Melbourne house prices drop

According to the Real Estate Institute of Victoria, the median price of a house in Melbourne declined by 3.3% in the September quarter.

REIV CEO Enzo Raimondo said the economic climate was having the strongest impact on the most expensive suburbs and the least in the most affordable areas.

"Overall, the local housing market is the most volatile it has been for many years," Mr Raimondo said.

"We have seen auction clearance rates vary by over 10 per cent over a month."