Melbourne auctions: Homes under $1 million behind bidding wars – realestate.com.au

Families in Melbourne are racing against the clock with just four weeks until the next potential rate hike and the possibility that the average family will have to pay $104 more per month on a loan.

PropTrack data shows large numbers of sellers are also looking to lock in a price before the next Reserve Bank meeting, with around 1200 homes scheduled for auction in Victoria this weekend, and volumes likely to rise closer to 1800 next weekend.

A $650,000 loan over 30 years will cost roughly $104 extra per month if the Reserve Bank raises rates by another 0.25 percentage point on March 17, based on the federal government’s MoneySmart mortgage calculator.
RELATED: Celebrity jeweler Millie Savage’s $2 million farewell to Fitzroy

Melb’s own Brady Bunch home for sale

Vic Real Estate ‘panic’ as REIV leaves

Zaralend director and mortgage broker Stephanie Jordan said while a rate hike would not be welcomed by homeowners, it should not have a major impact on Melbourne’s property market overall.

“If you break it down, that $104 comes out to about $24 a week, about three or four cups of coffee,” Ms. Jordan said.

“I don’t believe this is the difference between bidding or not bidding.”

Three takeaway coffees a week or the difference between offering and walking away? Real estate agents say the looming $104 mortgage hike won’t deter serious buyers. Image: Canva / Google Gemini

---

Zaralend director and mortgage broker Stephanie Jordan says most buyers going to the auction have already obtained pre-approval and know their hard limit.

---

Ms. Jordan said lenders typically give 10 days to two weeks’ notice of a rate increase, and most buyers attending auctions have obtained pre-approval before raising a paddle.
“If they’ve done their pre-approval properly, they know what their hard limit is,” she said.

PropTrack economist Eleanor Creagh says the increase in listings reflects the usual build-up seen in late February, rather than panic selling ahead of a possible interest rate move.

---

PropTrack economist Eleanor Creagh said the increase in auction volumes was a reflection of the seasonal build-up in the fall, rather than sellers getting ahead of interest rate expectations.

“We are seeing the natural increase that typically occurs in late February and March,” Creagh said.

She said clearance rates had remained steady despite new listings remaining below the same period last year, leaving pressure on available stock.

“It is more likely to be a gradual market recovery for Melbourne rather than an immediate increase,” she said.

Ray White Victoria and Tasmania’s chief auctioneer Luke Banitsiotis say the biggest bidding pressure remains below $950,000, especially in the $600,000 to $800,000 range.

---

Clearance rates remain steady despite tight inventories, with competition concentrated in Melbourne’s most affordable price ranges. Photo: Alan Barber

---

Tasmania’s Ray White Victoria and chief auctioneer Luke Banitsiotis said competition was heavily concentrated in key price points.

“The buyer pool is not huge, but the active buyers are serious,” Banitsiotis said.

“The greatest pressure is below the $950,000 mark, especially in the $600,000 to $800,000 range, where first-home buyers are most active.

“Properties under $950,000 see the toughest bidding wars.”

Sign up for the Herald Sun weekly property update. Click here to receive the latest news from the Victorian property market straight to your inbox.

MORE: Balwyn North ‘pile of dirt’ sells for $3 million
The huge 170-seat Melb restaurant opens in a hidden bunker

$85 million mega-hub to transform Melbourne’s west

david.bonaddio@news.com.au