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
