Warning for Victoria homebuyers after Reserve Bank rate hold
A shock Reserve Bank decision to hold the nation’s cash rate in place this week has sparked a warning for Victoria homebuyers.
A shock Reserve Bank decision to hold the nation’s cash rate in place this week has sparked a warning that Melbourne’s usually busy spring auction market will be delayed.
According to PropTrack there are 586 homes scheduled to go under the hammer this week, half the numbers seen as recently as last month and down 9 per cent on the same time last year.
Belle Property Victoria director Anthony Webb said the RBA’s decision to hold the nation’s cash rate and wipe expected increased borrowing capacity from buyers’ budgets came at the same time as auction volumes were down for the school holidays,
And Mr Webb has warned it’s likely Melbourne will have lower volumes of homes for sale in September as a result of the decision.
“Now, it’s more likely we’ll see that real spring momentum delayed until October or even November,” Mr Webb said.
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This weekend, outer suburbs are hosting some of the biggest auction numbers with Tarneit leading at 15 auctions, followed by Craigieburn, Wollert, and Reservoir, all with 13 each.
Another 691 auctions are already booked for next week, reflecting a 19 per cent year-on-year drop in volume, but experts say the decline in listings hasn’t translated into a drop in buyer interest.
Apollo Auctions Victoria director Andy Reid said it was likely those sellers should do well this weekend, as interest rate uncertainty hadn’t dampened demand, especially for practical, family-friendly homes in accessible locations.
“It’s the straightforward homes, three beds, two baths on manageable blocks, that are flying,” Mr Reid said.
M R Advocacy director Madeleine Roberts said savvy investors and rentvestors would capitalise on the pause while many first-home buyers stay on the sidelines, unsure whether to wait or act.
“The mistake I see first-home buyers making is hesitating,” Ms Roberts said.
“They’re holding out for the next rate cut, but by the time it arrives, competition will be stronger and prices will likely be higher.”
Melbourne Auctions To Watch
Langwarrin – 10 Kuranda St
Ex-boxer Kane Watts is selling his renovated family home with spa and development-ready block.
Guide: $990,000-$1.089m
Agent: Jacob Weeks, McGrath Langwarrin
Reservoir – 4/33 Pickett St
Luxe four-bed townhouse with timber floors and an entertainer’s deck.
Guide: $850,000-$920,000
Agent: George Gimelli, Ray White Preston
Cheltenham – 40B Silver St
Dual masters, high-end finishes and prized zoning near shops and schools.
Guide: $1.375m-$1.45m
Agent: Trevor Bowen, Ray White Bayside
Tarneit – 22 Gunter Dr
Family-friendly four-bedder close to shops and schools with stone kitchen and WIP.
Guide: $580,000 –$625,000
Agent: Abishek Elawaadhi, Okas Real Estate Truganina
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david.bonaddio@news.com.au
Originally published as Warning for Victoria homebuyers after Reserve Bank rate hold
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