Rental prices across Melbourne and regional Victoria are expected to stabilise as rental vacancy rates across the state continue to ease.
The median rent for a house in Melbourne increased slightly to $381 during the month of December, while regional Victorian rents stabilised at $300 per week, according to REIV.
The vacancy rate in Melbourne over the month of December increased slightly from November's 2.2% to 2.3%.
The highest level of vacancies was recorded in the middle suburbs at 2.9%, a continual easing from 2.3% during November and 1.2% a year ago.
The inner suburbs and Mornington Peninsula recorded a 2.5% vacancy rate, and the outer suburbs recorded 1.3% during the month of December.
The vacancy rate in regional Victoria eased in Geelong and Ballarat to 3% after Ballarat recorded 1.5% and Geelong recorded 2.1% in November.
Shepparton and Warrnambool had a vacancy rate just above 4%, and Bendigo and Wodonga recorded 0.8%.
Although the availability of rental homes is easing, it is yet to transfer into landlords reducing or stabilising rental prices.
Enzo Raimondo, the chief of the REIV, forecasts rents will either stabilise or reduce in nominal terms if the trend continues.
"The improved level of vacancies has not yet translated into lower rents being asked by landlords; however if the trend continues, as it is expected to, it will in time result in overall rents either stabilising or reducing in nominal terms," he says.
"REIV research indicates that they have generally fallen in real terms as the higher availability of rental homes has improved.
"It must be noted that there will be local areas and specific property types where there may still be a low level of vacancies,' he adds.