Experts are tipping that this spring could see a massive level of buyer activity across Melbourne.
Melbourne homebuyers are gearing up for spring in the biggest numbers since the city’s Covid boom amid a rate cut bonanza that’s added almost $100,000 to budgets.
Cashed up first-home buyers, especially tradies, are expected to have one of their best cracks at a purchase in history, with mortgage brokers revealing there has been a surge in inquiries after the federal government announced they would guarantee loans for high earners from October.
Families are also expected to try for some of the best homes suburbs have to offer, with falling interest rates raising confidence in the city’s property prospects luring back owners who had sat out the past three springs in response to sky-high mortgage costs.
RELATED: RBA rate call August 2025: What it means for buyers, sellers, owners
Female auctioneers rewriting Melbourne auctions this spring
Small backyard, big impact: Budget-friendly styling hacks for spring 2025
Prominent Melbourne buyers’ advocate Cate Bakos said a wave of demand was already emerging, with many purchasers missing out amid competitive auctions.
“Others are worried about the market running away from them with the impact of interest rate cuts and first-home buyer initiatives threatening to fuel the market, so for many, it’s FOMO,” Ms Bakos said.
She added that she was fielding more calls than at any time since the Covid-era boom of 2021, when Melbourne’s median house price skyrocketed by $170,000 in just 12 months to reach $1.07m.
“Now that interest rates have been cut thrice, and particularly given first-home buyers have had their deposit guarantee enhanced and brought forward, buyer enthusiasm has markedly increased; not to mention, investors are back, especially from other states,” she said.
This house at 32 Power St, Williamstown, is for sale with a $1.2m-$1.3m price tag. The suburb in Melbourne’s west has a $1.52m median house price, according to PropTrack.
Buyers’ agent Cate Bakos says she has not seen a Victorian property market this busy in spring, since 2021.
The buyers’ advocate said the expansion of the Home Guarantee Scheme, to remove income caps, would reshape the entry end of the market.
From October 1, buyers will be able to spend up to $950,000 in Melbourne and purchase with a 5 per cent deposit without paying lenders’ mortgage insurance.
“I predict well-located, boutique apartments and villa units to fare particularly well,” Ms Bakos said.
“I also think that the entry level housing markets in the sub-$950K range will perform strongly for those first homebuyers who are searching for a house.”
PropTrack is expecting 1048 auctions across Melbourne this week. Picture: NewsWire/David Crosling.
This Victorian-era, two-bedroom house at 44 Rose St, Brunswick, is on the market with a $1.05m-$1.15m range. The area’s median house price is $1.263m.
Mortgage Choice broker David Thurmond said for every 0.25 percentage point cut this year there had been an about $20,000-$30,000 boost to borrowing capacity for most homebuyers.
So, someone who could borrow $500,000 last spring could now potentially have access to $590,000 — almost $100,000 more.
It’s also possible there could be another cut later in spring, though inflation data released this week indicated it would likely be delayed.
In the past week, Mr Thurmond said he’d had multiple calls from first-home buyers whose income had precluded them from using the federal government’s First Home Guarantee — but who would be able to useitfrom October 1.
It’s important for both buyers and sellers to do their research and educate themselves about market conditions, median prices and legal requirements when thinking of buying or selling a home.
This three-bedroom house at 161 Munro St, Coburg, is for sale with $1.1m-$1.2m price hopes. The suburb, in Melbourne’s north, has a $1.1725m typical house value, PropTrack data shows.
There could also be a surge in tradies buying their first home, with many younger ones earning incomes above the current $125,000 threshold for sole-income earners hoping to access the government guarantee — which would also help them pin down a lender.
“Tradies have copped it left, right and centre when it comes to loans,” Mr Thurmond said.
“The banks don’t like them because they are self employed. But this spring might be their chance, there will be better opportunities for them — or at least better ones than there were.”
The southeastern suburbs-based broker tipped the $500,000-$800,000 price bracket to be the most active, with people aged 25-35 leading the charge.
This unit at 3/21 Jones St, Brunswick, has a $539,000 price tag. Units in the suburb cost a median $565,000.
Featuring three bedrooms, this house at 122 Tyler St, Preston, is for sale with a $900,000-$990,000 asking range. The area has a $1.16m typical house price, according to PropTrack.
Advantage Property Consulting director Frank Valentic warned it would be easy for buyers to lose discipline as competition ramped up.
“Be careful not to get carried away and get FOMO and overpay for a property because of emotion,” Mr Valentic said.
He suggested making pre-auction offers “to try and catch other buyers on the hop”, and to get someone to bid on your behalf if you might not stick to your limit.
Kay & Burton executive director Scott Patterson said Melbourne had experienced a “fairly subdued market for a few years” but was turning a corner this spring.
“There’s been a lot of sellers who perhaps have felt that it wasn’t the right market conditions to sell in the past couple of years,” Mr Patterson said.
“I think the sellers, or the people who own the larger, quality homes around the area are definitely more confident that there’s already a market for their houses.”
Advantage Property Consulting director Frank Valentic says it is important for buyers to try to stick to their budgets at auctions this spring.
A five-bedroom house, 23 Havana Cres, Frankston, is on the market for $750,000-$825,000. Frankston’s median house price sits at $760,000.
Apollo Auctions Victoria director Andy Reid said signs of competition were mounting earlier than expected.
“I’m already meeting buyers that have missed out on three to four properties, and this is only going to become more common which will turn the screw on the anxiety of the buyer population,” Mr Reid said.
“Spring may get pretty intense.”
What a spring rate cut could do to your budget
| Two-person combined income | Couple: Borrowing power after additional 25bp cut |
Couple: Borrowing power after additional 50bp cut |
Family: Borrowing power after additional 25bp cut with one dependant |
Family: Borrowing power after additional 50bp cut with one dependant |
| $150,000 | $788,800 | $807,300 | $737,100 | $754,400 |
| $200,000 | $1,082,900 | $1,108,400 | $1,030,700 | $1,054,900 |
| $300,000 | $1,698,700 | $1,738,600 | $1,646,000 | $1,684,600 |
| $400,000 | $2,232,000 | $2,284,400 | $2,178,700 | $2,229,800 |
Source: MortgageChoice
Tips for buyers this spring
+ Be pre-approved. Not just ‘online’ pre-approved, but full assessment pre-approved. That way you can jump in with an offer, or put your hand up at auction with confidence.
+ Don’t delay. Spring offers heightened volumes of stock and the market dries up once the big man comes down the chimney on Christmas Eve. If you are thinking that now is a good time to buy, these next three months are the optimal months
+ Don’t avoid auctions. It’s easy to think that all the auction results smash past the value of the property, but the quoting regimes can fool a lot of buyers. In a lot of cases, auction results are reflective of market value.
Apollo Auctions Victoria director and auctioneer Andy Reid says the spring market will be a challenge for buyers but it’s important ask all the questions you need answered, even if they seem silly.
Spring market advice and pitfalls for buyers and sellers, pending on their individual situations and aims. Graphic: Canva/Google Gemini.
+ Have your professionals on speed dial. Campaigns can pivot and things can move quickly in spring. You’ll need a conveyancer and solicitor, and a good building and pest inspector on hand when the right property comes along. Be prepared.
+ Get out there and do your homework. The internet gives you the numbers, but you learn so much more by getting out there and putting time into finding out the reality.
+ Trust your gut. Access to information is amazing, but beware of “paralysis by analysis”, because if you keep calculating, you’re likely to be left behind because of the “rear-view” nature of the information.
+ The only daft question is the one you don’t ask. Leave no stone unturned and ask lots of questions about the property and the process.
This house at 67 Kirby St, Reservoir, has a $750,000-$825,000 price tag. Ms Bakos said the suburb was a good alternative for buyers priced out of the inner north and Preston areas.
If you’re lucky enough to have deep pockets or win the lottery this spring, this five-bedrrom house at 25 Wrixon St, Kew, is priced at $9m-$9.9m. The suburb in Melbourne’s inner east has a $2.62m median house price.
+ Lose a battle to win a war. In this kind of market, there are plenty of situations that will test your perspective and if you focus too much on the moment and not enough on your end goal, you can cost yourself opportunities to achieve what you originally set out for.
+ Keep breathing. It’s going to be a challenge, so accept it, take a sip of your coffee, and get ready to be challenged. This isn’t a market to be half-committed in.
Source: Buyers’ advocate Cate Bakos, Apollo Auctions Victoria director and auctioneer Andy Reid
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Named: Melbourne suburb to bag bargain homes
English (US) · 