Melbourne’s median house price has risen to within $10,000 of its record high, reducing affordable options in a city that has led first home buyer participation.

The Victorian capital reached a median house price of $1,083,043 in the September quarter, up 2.2 per cent from June, the latest Domain House Price Report, released on Thursday, shows.

The median unit price in Melbourne is $12,000 from reaching a record high, hitting $590,597 by the end of September.

Domain’s chief of research and economics Dr Nicola Powell said first home buyers were particularly sensitive to changes in affordability, and had been the winners of “stagnating” prices in Melbourne in recent years after the last peak of $1,093,000 in December 2021.

“This has meant that first home buyers have been able to edge i

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