Melbourne house prices drop average of $10,000 in first three months of 2010

But higher rates have not slowed rising prices in many inner suburbs.

Eighteen suburbs recorded rises of more than 10 per cent, including Malvern East, Brighton, Frankston South, Footscray West, Ascot Vale, Glen Iris, Kew, Camberwell, Surrey Hills and Blackburn. was the best March quarter for seven years.

...figures showed top-end properties had been the best performers.

The strongest demand and price increases have been recorded in some of the city's most expensive suburbs.

...the number of house sales under $500,000 has dropped by 28 per cent

The median price of units and apartments increased by 2 per cent

The median house price in Geelong rose 4 per cent to $354,000

Interesting that the headline in so doom and gloom but the story seems to be opposite.