After a year-long correction Melbourne house prices are rising again, with a 4 per cent increase in the year to October. A strong start to the spring auction season underpinned the market, with median values rising 5.5 per cent to $361,500 during September and October, according to property analysts Residex. There were more auctions and higher clearance rates than at the same time last year. Residex managing director John Edwards said Melbourne's residential market bottomed around July last year with a median value of $320,000. He described the 4 per cent rise in the year to October as very positive. Sydney's median value fell 0.6 per cent in the same period. Mr Edwards said Residex figures represented about 75 per cent of all residential sales to the end of October. He said the rise in Melbourne's prices offset an over-correction during winter. Source:The Age