Hi,

Auctions are back and the Melbourne property market is almost back into full swing for 2026.  It is great to be back and I am very much looking forward to helping buyers in 2026.  Over the weekend, there were 416 auctions reported to Domain resulting in a clearance rate of 74%. Much stronger than the 61% clearance rate that was achieved for the same weekend last year.

There is a lot of talk around interest rates with all four major banks forecasting a 0.25% increase tomorrow to bring the cash rate to 3.85%.  The Reserve Bank of Australia are meeting today and tomorrow to make the decision but an interest rate rise is highly likely is due to unemployment falling to 4.1% in December, headline inflation increased to 3.8%, core inflation rose to 3.3% and consumer spending increased by 2.8% in 2025.

The likely interest rate hike has not seemed to dampen the spirit of buyers at this stage, our enquiry from new buyers over the summer break has been reasonably strong which is usually a good indication of how active buyers are.  There is definitely a feeling of buyers just wanting to get on with it.  Investors are still circling, and owner occupiers are willing to transact.  This also is reflected in the clearance rate from last weekend which is significantly higher than January last year.

PropTrack Home Price Index released their median price data for December reporting that the Melbourne median price dipped slightly by 0.3%.  This slight dip is pretty reflective of a usual December market where vendors motivation to sell prior to Christmas are generally high, and therefore will drop their expectations in order to have their property sold.

So whilst there was a slight dip in prices in December and a looming interest rate rise this week, the Melbourne proprety market is still very stable.  Buyers are interested and are purchasing, whether that be an investor, upsizer, downsizer or first home buyer.  The amount of properties on the market is still low but this will increase over the next few weeks which will help to level out the market.

Have a great week.

Kim Easterbrook – Managing Director