Hi,
Melbourne’s auction numbers increased over the weekend with 606 auctions being reported to Domain. 437 properties sold under the hammer, 58 properties were withdrawn and 111 passed in. In comparison, the clearance rate for the same weekend last year was 57%.
Firstly, in last week’s market wrap I reported that the Reserve Bank of Australia were due to meet last week to determine the outcome for the cash rate. This was actually incorrect and the RBA are due to meet next week, 20th of May.
Some banks have already started decreasing interest rates ahead of next week’s meeting which is welcomed relief to mortgage holders. Core inflation has fallen into the Reserve Bank’s target range for the first time in three years. Headline inflation remained steady in the March quarter at 2.4% and trimmed mean is at 2.9%, the lowest level it has been since December 2021. It is highly likely that the RBA will drop the cash rate next week, the question will it be 0.25% or 0.50%? Seeing the RBA’s cautious approach, one would think that 0.25% would be more likely with a wait and see approach.
Confidence appears to be building once again in the Melbourne property market but we have felt this stop/start approach many times over the past few years now. Earlier this year, we felt 2025 was going to be a very active year for property buyers and sellers and this came to a halt when Trump’s trade war started and then the federal election date was announced. With the recent school holidays and the federal election over, it feels it may have given the property market another reset and along with the imminent interest rate cut, more buyers seem ready to enter the property market. Investors are circling again (both local and intestate) and home buyers are getting ready to purchase as the fear of property prices going up soon is starting to set in.
Have a great week.
Kim Easterbrook – Managing Director
Hi ,
Over the weekend, Melbourne produced the strongest auction clearance rate in the country with a rate of 73%. This is the highest clearance rate we have seen since June 2023. Of 482 auctions reported, 350 sold, 47 were withdrawn and 85 passed in. Whilst the amount of auctions were lower due to the federal election, to compare, other weekends where auction numbers were lower (long weekends) have still only produced auction clearance rates in the low to mid 60%’s. The same weekend last year produced a clearance rate of 58%.
Like the election outcome or not, it is over and the uncertainty this creates because of the “uncertainy about the outcome” has now passed. Along with tomorrow’s predicted interest rate cut, we are anticipating this to bring some confidence back into the Melbourne property market. Interestingly, last week, we saw an increase in new buyer enquiry in our office, along with the increased clearance rate is demonstrating that we may be turning the corner.
PropTrack Home Price Index has been released and Melbourne is sitting just behind Adelaide in property price growth for 2025. Home values in Melbourne have increased each month so far this year and is demonstrating a good sign that we are well into the recovery of the Melbourne property market. Sydney, Brisbane, Canberra and Adelaide have higher median dwelling values than Melbourne which makes us one of the most affordable cities in the country. Melbourne is also experiencing significant population growth, (increased by 142,600 in 2023-2024), which is increasing demand for property and therefore Melbourne has become a very attractive place for property investors to buy.
Whilst this week’s interest rate cut will be welcomed by many, it will take one or two more interest rate cuts to really start driving property prices and therefore I believe still gives buyers some time and opportunity to buy well in the Victorian property market. We have had a great year of buying for our clients thus far and I still believe we have a window of opportunity left until property prices start to rise.
Have a great week.
Kim Easterbrook – Managing Director
Hi,
942 auctions were reported to Domain over the weekend with 601 selling under the hammer, resulting in a clearance rate of 64%. This is slightly less than last week being 66% on 1,065 reported auctions. The same weekend last year resulted in a clearance rate of 60%.
Even though the clearance rate is stronger than last year, the sentiment out in the property market feels very much the same. Trump’s trade war and the federal election has resulted in buyers cooling their jets somewhat on what had we all had thought was going to be a very good year in property. My feeling this will only temporary.
There has been a lot of talk about interest rate cuts over the past week with some economists and NAB predicting next month could be a 0.5% rate cut. Others predicting we could see interest rate cuts upto four or five times this year. Whatever it ends up being, it is almost certain we are not going to see interest rate rises for quite some time.
Peter Dutton announced yesterday that he is proposing to enable first-time home buyers to deduct interest payments of newly built homes from their taxable income for the first $650,000 of a mortgage. Labor has pledged to allow first home buyers to purchase a property with a 5 per cent deposit, avoiding the need for lender’s mortgage insurance. Both parties are looking at ways to help more buyers enter in the market which could further put pressure on property prices.
Whilst there is a lot of economic talk which could result is property prices rising, as at today, the sentiment is cautious and I believe now could be as good as time as any to buy. I have purchased five properties for my clients so far this month without including my team’s purchases. There are some exceptions to this of course which we have seen multiple buyers competing to secure a property, but the Melbourne property market overall is patchy and is opening up the door for some buyers to purchase a property they did not believe they would be able to within their budget.
This weekend there will be no auctions due to the Easter long weekend and the following weekend still quiet due to Anzac Day, however auctions will be back to normal from the 3rd of May.
Have a great long weekend and the market wrap will be back on the 5th of May.
Kim Easterbrook – Managing Director
Hi,
The Domain auction clearance rate came in at 64% on 997 reported auctions. 640 sold at auction, 236 passed in and a total of 121 were withdrawn. The clearance rate for the same time last year was 62%.
The property market continues to yield patchy results, with some properties doing extremely well with competition from multiple buyers, and others lucky to attract one bid/offer. The weeks leading up to a federal election often create some uncertainty which results in some buyers (and some vendors) sitting on their hands until after the election. Interestingly, Labor took proposals of changes to negative gearing/property investor tax consessions to the 2016 and 2019 federal elections which impacted property prices and sentiment across the country. This year there are no mention of any reforms that will impact the property market, yet the uncertainty of who will win, is enough for some buyers to just pause temporarily.
The good news though is that has created a small window for buyers to take the opportunity of less competition. There will be another Reserve Bank meeting tomorrow but it is unlikely any further relief in interest rates will come until mid year at a minimum.
We were successful in securing a family home at auction on the weekend and it is a good example of quality homes are in strong demand (and pretty much are in all property market conditions). The property ticked all the boxes, pretty period home, fully renovated, north facing rear, great street close to shops, cafe’s and walking distance to the beach. The auction was not easy though and we did have a fight on our hands to secure it. These rare homes almost always have strong competition to secure them and we were thrilled to have been able to purchase the property for our happy clients.
Have a great week!
Kim Easterbrook – Managing Director
Hi,
The Domain Melbourne auction clearance rate came in at 67% over the weekend on a what was a ‘Super Saturday’. Of the 913 auctions that were reported, 610 had sold at auction. This is stronger than the 61% clearance rate from the same time last year.
Whilst we are seeing increased activity in the Melbourne property market this year, at this stage reports and also what we are witnessing (generally speaking) there have been no increase in property prices. In many cases, properties are selling exactly where the value lies and buyers are still very cautious at what they are willing to spend due to the increased cost in mortgage repayments.
Uncompromised properties at various price points are attracting good interest, this may be family homes that are renovated, presented well, located on a quiet street, lots of natural light, or a villa unit in a small block of 2 or 4 which is located close to public transport and shops. Also well located apartments that have great outlooks, a good floorplan, well maintained small blocks are also attracting multiple bidders at auction, but again, runaway results are rare.
Feedback from many selling agents and also we can confirm we are witnessing the same, was that February was a strong month of activity mostly due to the interest rate cut but with the looming federal election and the uncertainly of Donald Trump’s tariffs that this has slowed somewhat.
I attended the auction of 3/110 Caroline Street, South Yarra which is a well located apartment, in an excellent block, nice northern outlooks, very liveable but could benefit of an update later down the track. The auction was very well attended with what looked like five or six parties there with intention to bid. A mix of single professionals, couples and what appeared to be some downsizers looking for a weekend, city pad. The property was quoted $740,000 to $760,000 prior to auction. The last one sold in the block for $757,000 which was arguably not in as good of position in the block. The opening bid was $768,000 and a second bidder came in straight away at $780,000 and the two parties went head to head where it sold for $855,000.
Have a great week!
Kim Easterbrook – Managing Director
Hi,
The Domain clearance rate is sitting at 67% for last weekend with 868 auctions reported and 583 selling at auction. In comparison, the same time last year the clearance rate was 60%.
There has been a lot of hype over the Melbourne property market over the past month. The interest rate cut and media reports/investor sentiment that Melbourne is undervalued, has created increased interest in Melbourne’s property market. However, with a federal election looming and Trump’s tariff policy creating havoc, there is still an element of caution out there with buyers.
It is evident that the property market is in better shape than it was in 2024, however stock levels have risen and whilst there are more buyers in the market, they are cautious and not overstretching budgets to get into the market. Interest rates and inflation have affected cost of living and borrowing capacity and therefore buyers have strict budgets when they buy property.
Corelogic data showed that in January Melbourne’s property prices declined by 0.6% but February showed an increase of 0.3%. It feels like the property market has stabilised and whilst there is strong competition on some properties, generally speaking it appears that most properties are selling exactly where the value of the property is at.
I believe buyers still have a window where conditions are favourable (keeping in mind that quality family homes seem to be where the most competition lies) until we see further interest rate cuts which may still be 3 to 6 months away.
Have a great week!
Kim Easterbrook – Managing Director
Hi,
The first Super Saturday was scheduled last weekend and resulted in over 1,020 auctions being reported to Domain. Of those, 679 sold at auction achieving a clearance rate of 67%. This equals last week’s clearance rate of 67% on 718 auctions and ahead of last year’s clearance rate of 61%.
The property market is now in full swing and last week’s Super Saturday was a good starting point to gauge how the market is currently performing. There is definitely a lot more interest and higher confidence in Melbourne property this year. But…we are not seeing any signs or willingness from the majority of buyers to push their budgets to secure a property. Many properties are selling exactly where they should be in terms of value.
Price quote ranges are all over the place and are showing no indication of where the reserve price is going to lie. I bid at two auctions on the weekend, one auction didn’t reach the reserve price until 10% over the top of the quoted range… the other auction reached the reserve price in the middle of the quoted range and sold within the range, under the hammer, with three bidders. In both instances, the properties sold pretty much where the value was and the under bidders had firm budgets with what appeared to be no wriggle room above that. So whilst thus far we are seeing more activity, more buyers circling, more bidders, the auctions we have attended, mostly have not seen runaway results.
Have a great week!
Kim Easterbrook – Managing Director
Hi,
Good news for borrowers today with the Reserve Bank of Australia cutting interest rates for the first time in four years. The cash rate has been reduced by 0.25% to 4.10%. Banks have recently been lowering their mortgage rates in anticipation of the interest rate cut today and it is speculated that the big banks will almost certainly pass the first RBA cut on in full to their variable rate borrowers.
It is likely the RBA will use a conservative ‘wait and see’ approach but this may be the start of the cash rate’s downward cycle. It will be unlikely that we will have another interest rate cut at the next meeting on the 1st of April, but if inflation stays under control and the jobs market doesn’t become stronger, we might be in for another rate cut mid-year.
And most economists and banks agree there are more cuts on the way, three of the four major banks are predicting a minimum of four rate cuts this year with ANZ predicting there will be two interest rate cuts this year.
This also could mean the end of the sluggish property market in Melbourne with reports of increased numbers at open for inspections last weekend and even we have seen a spike in new buyer enquiry over the past 24-48 hours. It will take a good month or so to really see what the immediate effect will be on property prices (if any), but it’s nice to see some optimism in the back in the Melbourne property market again.
Kim Easterbrook – Managing Director
Hi,
The Domain clearance rate improved this weekend resulting in a clearance rate of 70% on 604 auctions reported. 422 property sold at auction and 130 passed in. This is higher than the 65% clearance rate recorded last year.
The team has had a busy week purchasing properties and although there is a sense of confidence in the market, buying conditions still appear to be favourable to buyers. Open for inspections are busier than last year however many buyers have just started their property journey, researching the market, and taking their time to ensure they purchase the right property.
Lots of talk about an interest rate cut tomorrow, the four major banks are predicting that interest rates will be cut by 0.25%. There is a small minority of economists who believe interest rates will remain on hold due to the strong jobs market. We will know for sure tomorrow afternoon.
There is lots of speculation about what this will do for property prices. Even though we have higher levels of buyers circling at the moment, there is still an element of caution with some of these buyers and the market appears to be very price sensitive. An interest rate cut will likely start to motivate these buyers but I think it will take a second interest rate cut to really start driving the market. Whilst this is possible, the RBA will likely take a ‘watch and see’ approach before decreasing in the very near future.
The Melbourne and Geelong property markets are still catching the attention of interstate investors (local investors still quiet) with many viewing the market as ‘undervalued’. Local home buyers are very active, whether that be first home buyers, upsizers and downsizers. 2025 is gearing up to be a busier year than it was last year.
Have a great week!
Kim Easterbrook – Managing Director
Hi ,
The team at Elite Buyer Agents are back for 2025 and excited about what this year will bring in the Melbourne and Geelong Property Markets. Auctions have started and already bringing higher clearance rates than last year. Auction numbers are still low but will increase weekly and a ‘Super Saturday’ is predicted for the 22nd of February.
Domain Melbourne Auction Clearance rate as at Saturday evening was at 68% on 466 auctions. 315 sold at auction, 108 passed in and 43 were withdrawn. The clearance rate for the same week last year was 64%.
What a difference 12 months can make in property! 2024 was a tough year in Melbourne for real estate. There was a lot of negative press about the Melbourne Property Market, confidence was low, investors were selling fast pushing stock levels higher and buyers were very cautious. Fast forward 12 months, investors are circling, stock levels are low, and it looks like we have hit the peak of the interest rate rises with strong predictions of a rate cut next week. Not only has Melbourne come alive over the holidays, but there is now a lot of positivity about the Melbourne Property Market for 2025. A property in Toorak just recently sold for approx. $150m which now holds the record for the country as Australia’s most expensive home.
Melbourne historically has been Australia’s strongest performing property markets until recent years where it has lagged behind. This is due to the extended lockdowns during the pandemic, increased land taxes, new legislation around rental properties, rising interest rates and a sluggish economy.
Population growth will continue to be a main driver in buyer demand, and the State Government have recently predicted that Melbourne’s population will rise to 8.5 million people by 2051, a huge increase from its current 5.3 million people making it the fastest growing city in Australia.
So what does this mean for property prices in the short and long term? Over the long term, we will still have supply issues if the population increases at the levels the State Government is predicting, which should keep property prices rising. However for 2025, I still believe it will be a slow and steady pace for the first half of this year. Buyer confidence has already increased and we saw evidence of lots of buyers at open for inspections on Saturday. Whilst I feel buyers will still see some good opportunities in the short term, these opportunities will become fewer and far between over time. I believe the Melbourne Property Market has already entered the recovery phase and both KPMG and CoreLogic are predicting solid property price growth this year which all the signs are there that this could happen.
Have a great week!
Kim Easterbrook – Managing Director
