Melbourne real estate agents are preparing for a busy spring, as the prospect of further interest rate cuts this year fuels a burst of market confidence.
Home prices across Melbourne have been recovering, with the city’s median home price up 1.5% to $824,000 in the year to July, according to the latest PropTrack Home Price Index.
The rebound has come after the Reserve Bank cut interest rates twice in early 2025, followed by another cut in August and more expected throughout the rest of the year.
Homeowners have welcomed the rate cuts and the reduction in their mortgage repayments, however it’s a bittersweet move for first-home buyers.
While interest rate cuts can improve borrowing power, experts predict the rate cuts will boost market activity and lead to higher home prices.
Melbourne home prices were just 1.1% away from the peak, while home prices across most parts of the country were already at record highs.
Melbourne's median home price rose 1.5% year-on-year to $824,000 in July. Picture: Getty
Tai Menahem, real estate agent and director at Buxton – Ashburton, said there were positive signs in the Melbourne property market.
“For the first time in a long time, you've got momentum kicking through,” he said.
Spring is a traditionally active time for Melbourne’s real estate market, with many sellers choosing to show off their homes when their gardens are in full bloom.
Melbourne suburbs with the fastest growing house prices
| Suburb | Median price | Annual price growth |
| Aberfeldie | $2,010,000 | 24% |
| Bittern | $1,170,500 | 21% |
| Strathmore | $1,683,500 | 18% |
| Carlton North | $1,700,000 | 17% |
| Carrum | $1,016,000 | 16% |
| Portsea | $3,752,000 | 15% |
| Deepdene | $3,633,000 | 13% |
| Gembrook | $1,012,300 | 13% |
| Dingley Village | $1,140,000 | 12% |
| Launching Place | $750,000 | 12% |
| Fitzroy | $1,700,000 | 11% |
| Gowanbrae | $880,000 | 11% |
| Burnside | $795,000 | 10% |
| Kinglake | $945,000 | 9% |
| Malvern | $3,100,000 | 9% |
| Lancefield | $720,000 | 9% |
| Clayton | $1,260,000 | 9% |
| Tyabb | $860,000 | 9% |
| Canterbury | $3,475,000 | 9% |
| Eynesbury | $735,000 | 9% |
It’s also often believed that spring is a great time to list homes for sale due to pent-up demand from buyers who typically have fewer options to choose from during winter.
The latest PropTrack figures show new property listings in Melbourne were down 4.4% year-on-year in June, while total listings were down 5.8% compared to the same period last year.
Michelle Stephens, licensed real estate agent at OBrien Real Estate - Carrum Downs, said spring was a great time to sell.
“We find people are coming out of hibernation, but we also have some really key dates with Melbourne as well,” she said.
The four-bedroom house at 46 Vida Street, Aberfeldie sold for $1.95 million in June. Aberfeldie has recorded some of the fastest growing house prices in Greater Melbourne. Picture: Realestate.com.au/sold
“We've got the AFL grand final, and then we start the spring racing carnival.”
While Melbourne home prices may be rising once again, buyers still hold some bargaining power.
Ben Kenyon, licensed real estate agent and director at Stockdale & Leggo - Rye and Rosebud, said buyers wanted homes that were move-in ready.
Melbourne suburbs with the fastest growing unit prices
| Suburb | Median price | Annual price growth |
| Strathmore | $737,500 | 29% |
| East Melbourne | $840,000 | 22% |
| Mount Eliza | $875,000 | 18% |
| Beaumaris | $1,182,500 | 17% |
| West Footscray | $525,000 | 16% |
| Lower Plenty | $735,000 | 14% |
| Westmeadows | $592,500 | 13% |
| Fairfield | $600,000 | 11% |
| Bentleigh East | $850,000 | 10% |
| Mulgrave | $858,000 | 10% |
| Moorabbin | $692,500 | 10% |
| Kingsville | $417,500 | 10% |
| Pascoe Vale South | $690,000 | 9% |
| Airport West | $679,000 | 8% |
| Brighton East | $1,135,000 | 8% |
| Somerville | $605,000 | 8% |
| Thomastown | $526,000 | 7% |
| Mooroolbark | $700,000 | 7% |
| Moonee Ponds | $561,000 | 7% |
| Caulfield South | $820,000 | 7% |
“Buyers want [homes] they can come into and there's nothing to do, and they can move straight in,” he said.
Agents said presenting homes well for sale was important, suggesting that vendors hire professionals for staging and ensure gardens are in tip-top shape.
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