Melbourne Property News Monthly Wrap – April 2022

Read our FREE eBook and get the most out of buying with our 4 steps to success CLAIM YOUR FREE EBOOK

Melbourne Property News - Buyer Marketing

A great April for buyers

Over April’s first three weekends the Real Estate Industry of Victoria (REIV) recorded more than 2,938 auctions. 1,668 properties sold, 1,238 at auction, with 521 passed in. 428 properties were sold before auction & 2 properties were sold after auction. The clearance rate averaged 77.5%, only very slightly down on March’s 78%.

The April auction market started with two huge weeks and then eased off for the Easter holidays. Home price growth momentum stalled again across March with Melbourne values actually falling by 0.1% (CoreLogic). But after 2021 delivered the third fastest period of home price growth in Australia’s history, peaking values had to ease off eventually.

Playing field is changing again for buyers

It’s a great time to buy a property and although the market is stable the auction environment has changed again in Melbourne. With plenty of supply and cooling values, April bidders are holding back more at auction. The shift is more to behind the scene negotiations and tactics. We know all the ins and outs of this and with Buyer Marketing batting for you, you’re in the best position to secure the property you want!

Plan ahead for rate rises

Buying a home right now is going to take some extra planning for expected interest rate rises. The Reserve Bank usually doesn’t suddenly jack rates right up but tends to creep them up. A quick look at the figures below shows how much extra money you’ll need when this kicks in:

Currently, home loan interest rates average around 2.52%. So if a house costs 1.3M, after your 20% deposit the loan is around 1.09M, with monthly payments around $4342. If the mortgage rate goes up an extra .5% to 3.02%, you’ll need an extra $290 a month, or $72 a week.

Or, if the mortgage rate goes up 1.5%, to 4.02%, you’ll need and extra $900 a month, or $225 a week.

What’s supporting home price values in 2022?

There are also some factors bolstering values in 2022. This includes increases in equity homeowners have gained over 2021, which will prompt them to go to market and upgrade to a more expensive home. Also, at the modest end of the market continued Morrison government support for first home buyers helps support values in that range.

Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing


Want to get the best outcome with your property purchase?

Enter your details below to download our Essential FREE Property Buyers Guide and learn our 4 steps to success!

1. Search – how to find the ideal property to match your needs
2. Evaluation – what you need to evaluate with your potential purchase
3. Acquisition – secure your property with minimum fuss and for the best price
4. Legal & financial requirements – how to ensure all is in order with the property and sale documentation

  • This field is for validation purposes and should be left unchanged.

Buyer Marketing – Melbourne’s most experienced buyer advocates will not disclose any of your personal information.