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February 2025 – it’s a great month for home buyers
Over February’s first 2 weekends the Real Estate Institute of Victoria (REIV) recorded more than 922 auctions. 798 properties sold, 601 at auction, with 124 passed in. 193 properties were sold before auction with 4 properties selling after auction. The clearance rate averaged a very high 84%. 678 homes sold by private sale. 678 properties sold by private sale.
The road ahead looks clearer now
This year is going to very eventful for home buyers. This is because we are at a pivot point (a likely rate cut), and rarely do you have such a clear view of the market ahead. For the last two years, with climbing interest rates and other post-Covid issues, most Melbourne home values have either stalled, or fell. This has been at odds with most other State markets, which have boomed.
But now there’s every indication Melbourne is at a turning point. If rates do turn a corner on February 18 and are cut, it will bring a change. The change wont be instant but it will start. Uncertainty will be replaced by optimism. More buyers will see it’s time to make a move before home prices go up steeply again.
How much will values rise in 2025?
There’s no crystal ball, but market analysts do make estimates about the impact of interest rate cuts. Here’s an example. Based on data, CoreLogic has calculated that in previous cycles, key areas like Box Hill and Essendon, Manningham and Bayside, home values go up from 16% to 18%, with each 1% drop in interest rates. The Reserve Bank usually adjusts rates in 0.25% increments, so this means there would have to be consecutive cuts to make up a 1% drop. But the upshot is, the data shows once rate cuts do start, a medium-term upswing in values around Melbourne of around 16% could be on the cards (CoreLogic).
Most importantly, you have to buy well!
If you are ready to buy a home, the key is getting the best value. Buy quality, but don’t overpay. With our experience, Buyer Marketing helps you make sure firstly, you find the perfect property, and then, buy for the best possible price. Either by negotiation, or at auction.
A quick look at our Testimonials is the best way to see how we made this happen for so many happy customers!
Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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