Melbourne home sellers have been given the chance to win a surprise auction since the rate hike

Melbourne real estate agents could be set for a surprise boost this weekend, with historical rate data showing a rise in auction sales due to expected price increases.

Sellers also believe that even if sad news is predicted for their owners, this will be a “good weekend for sellers”.

On 4 May 2022, the day the Reserve Bank raised rates for the first time since 2010, PropTrack records show the approval rate at the city’s auction as of last week was 85.5%.

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Seven days before that it was 80.1 percent.

The RBA has raised rates for nine of the next 10 months, before pausing them in April 2023.

A month later, when the RBA hiked again on May 3, 2023, the approval rate rose from 67.3 percent overnight before 68.2 percent in the week leading up to the hike.

The last time the Reserve raised rates, on November 8, 2023, the approval rate fell to 59.6 percent from 61.7 percent the week before November 1.

Melbourne’s auction market will start in 2026 with prices likely to rise.

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But that weekend also includes a fake Melbourne Cup weekend, where concession prices are constantly fluctuating due to a huge reduction in auction numbers.

PropTrack data shows there were 648 auctions scheduled this week, although most were scheduled for weekday evening sales, and Ray White Victoria’s senior auctioneer Luke Banitsiotis believes they are set to win.

Mr Banitsiotis said the figures and the broader market trend of fewer homes being sold than buyers looking to buy suggested this weekend should be a busy one for sellers, despite poor forecasts for mortgage lenders next week.

“Usually there is a group of people who want to close the deal beforehand,” he said.

Ray White Victorian auctioneer Luke Banitsiotis says the auction should be strong this week.

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The auctioneer said that after calling 15 auctions during the week, 10 sold under the hammer and the rest are expected to be negotiated for sale soon.

“I don’t think the Reserve Bank going north will be a big surprise,” he said.

“So I think the market will do at the same rate, if not better.

“And from what I’ve seen in the market, this should be a good weekend for retailers.”

But if the RBA looks set to hike again at its next meeting on March 17, the approval rating could suffer – as PropTrack figures show it falling every month until the end of 2022 except for December when it rose modestly to 57.2 per cent.

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