A monthly average of $104 approaches as 1800 homes prepare to go under the hammer across Victoria, testing Melbourne buyers just as the auction season heats up.
Melbourne families are running around the clock with just four weeks until the next interest rate hike and the possibility that the average family will pay $104 more a month for their mortgage.
PropTrack data shows a large number of sellers looking to lock in prices ahead of the Reserve Bank’s next meeting, with around 1200 homes set to go up for auction across Victoria this weekend, with prices set to rise to close to 1800 next weekend.
A $650,000 mortgage over 30 years will cost about $104 more a month if the Reserve Bank raises interest rates by another 0.25 percentage points on March 17, based on the federal government’s MoneySmart mortgage calculator.
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Zaralend director and real estate agent, Stephanie Jordan, said that while the rise in interest rates would not be welcomed by homeowners, it should not have a major impact on the overall Melbourne property market.
“When you break it down, that $104 is about $24 a week, about three or four coffees,” Ms Jordan said.
“I don’t believe it’s the difference between bidding or not bidding.”
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
Three coffees bought a week or the difference between bidding and walking? Brokers say the looming $104 mortgage rump won’t deter big buyers. Image: Canva / Google Gemini
Zaralend director and real estate agent Stephanie Jordan says many buyers who go to auction have already received pre-approval and know their hard limit.
Ms Jordan said lenders usually give 10 days’ notice two weeks before a rate hike, and many buyers who go to auctions get pre-approval before upping the ante.
“If they’ve done their pre-approval properly, they know they’re going to hit their hardest,” he said.
PropTrack economist Eleanor Creagh says the increase in listings reflects normal construction in late February rather than panicked sales ahead of a potential move.
PropTrack economist Eleanor Creagh said the increase in auction prices reflected seasonal growth in the fall rather than sellers rushing ahead of expectations.
“We see a natural increase that happens in late February and March,” Ms Creagh said.
He said the release rates were stagnant even though the new inventory was tracked below the same period last year, which kept the pressure on the existing stock.
“It’s likely to be a gradual recovery of the market in Melbourne rather than a quick surge,” he said.
Ray White Victoria and Tasmania senior auctioneer Luke Banitsiotis says strong bidding pressure remains under $950,000, particularly in the $600,000 to $800,000 bracket.
Clearing rates are strong despite strong stock, with competition concentrated in Melbourne’s most affordable price bands. Photo: Alan Barber
Ray White Victoria and Tasmania chief marketer Luke Banitsiotis says competition is focused on key price categories.
“The buyer pools are not big, but active buyers are willing,” said Mr Banitsiotis.
“The strongest pressure is sitting below $950,000, especially in the $600,000 to $800,000 range where first home buyers are most active.
“Properties under $950,000 see the biggest bidding wars”.
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