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Rate cut relief for buyers in May!
Over May’s first 3 weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,563 auctions. 1,202 properties sold, 875 at auction, with 221 passed in. 327 properties were sold before auction with 0 properties selling after auction. 556 homes sold by private sale. The clearance rate so far in May has averaged a whopping 85%.
Rate cut boosts buying power
The Reserve Bank cut the cash rate on Tuesday to 3.85%, easing pressure on mortgage payers, delivering a saving of about $114 a month on a $750,000 loan. It’s great news for buyers too!
How are home values travelling?
Across Australia, CoreLogic’s national Home Value Index recorded a third straight month of value growth through April. Melbourne’s contribution to this healthy market is a 0.2% rise.
And the turnover in buying and selling is constant. According to CoreLogic, 20% of Australia’s residential properties changed hands in the last 5 years. Australians love upsizing to bigger homes, across to better locations, or downsizing when that time comes. Or to buy or sell for investment. And Melbourne is far and away Australia’s auction capital, for example notching up 803 in May’s first week, compared with Sydney’s 577 auctions.
National values health check
The quickest way to gauge national home-value trends is by the proportion of homes, in the capital cities, valued at a million or more. Land-locked Sydney with almost no room to expand, leads the way with 64.4% of homes worth over a million. Booming Brisbane grabbed second place soon after Covid and still holds it with 42%. A big exodus of ‘border-changers’ went north from southern states. Melbourne is third, where 30.9% of homes top the million mark. Adelaide and Perth are close behind, with 27% and 25% respectively. Generally you could say the National market’s in good shape!
What are investors doing?
According to market analysts CoreLogic, many investors were bailing out of Melbourne, after being harassed with higher taxes by the State Government.
In Victoria at the moment three in every ten ‘for sale’ listings are investment properties. This is similar to Sydney, but it’s a higher proportion than in most other states (where the investment dollars are often going). This retreat of investors from Melbourne means there are fewer properties available for Melbourne renters. So rents are going higher. These higher rent returns are a bit of a silver lining for the Melbourne landlords/investors who do not sell up and go. One outcome may be that Melbourne’s lower property values will attract investors who are ahead of the game, looking to Melbourne for some of Australia’s best value!
Buy with confidence, with Buyer Marketing in your corner
Buyer Marketing will find you the perfect property and negotiate the most advantageous purchase price for you – the buyer! For more information about Buyer Marketing’s services, call us 24/7, on 1300 835 835 or 0418 119 911. We look forward to working with you.
Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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