More than 160 Melbourne sellers withdrew auctions as buyers grew cautious ahead of the next interest rate call.
Private sales are replacing the auction hammer in Melbourne as 164 sellers pulled listings amid renewed rate hike nerves.
PropTrack data shows Melbourne recorded a 68.6 per cent clearance rate this week, with 653 reported results and 164 withdrawals.
The jump suggests more sellers are choosing private sale campaigns rather than risk a public pass-in under the hammer as uncertainty builds ahead of the upcoming interest rate call in four weeks time.
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Nick Johnstone director Nick Johnstone said the softer auction mood was landing at the same time buyers were being offered real value in blue-chip pockets, with prestige family homes on substantial land selling below peak.
“Properties in the $3m to $4m range that might have been $4m to $5m a couple of years ago have corrected 10 to 15 per cent,” Mr Johnstone said on Monday.
“That’s meaningful value. If you can secure a quality home on a large parcel of land in a blue-chip pocket, you’re buying strong fundamentals at a discount to peak.”
Mr Johnstone said auction energy had collapsed, even as private sales continued to move.
Nick Johnstone says prestige Melbourne homes are trading 10 to 15 per cent below peak, creating rare blue-chip buying windows. Picture: Jake Nowakowski
“There’s definitely been a vibe in the air,” he said.
“We’ve had a really strong week with private sales, but the auction market has lost momentum.
“Buyers are cautious.”
He said Melbourne had been flat for about two years and history showed prolonged slow periods could be followed by sharp rebounds once confidence returned.
“I remember the GFC period in 2008, we had about six quiet months, and then 2009 just went crazy,” Mr Johnstone said.
“We’re the only state where prices haven’t been climbing aggressively.
“That’s why interstate buyers are circling, they see relative value here.”
Damian Medici says rate rise chatter is shifting sentiment, but hesitation can create leverage for decisive buyers.
Auction energy has softened across Melbourne, with fewer bidders competing under the hammer this month.
Margin Finance director Damian Medici said the withdrawal figure was a sign agents were reading the room and managing campaigns accordingly.
“Whenever there’s talk of a rate rise, sentiment shifts, people pause,” Mr Medici said.
“It’s about protecting the seller, no agent wants to take a property to auction if they know it won’t sell under the hammer.”
But Mr Medici said those pauses could create leverage for owner-occupiers prepared to act while competition thinned.
“Ironically, that’s often when the best opportunities appear,” he said.
Ray White Bayside Group director Kevin Chokshi warns buyers waiting for certainty risk missing out as many homes still sell within 10 days.
Ray White Bayside agent Kevin Chokshi said the auction numbers did not capture the full level of demand, with many homes still expected to transact soon after Saturday.
“Many of the properties passing in today will still sell within 10 days,” Mr Chokshi said.
His advice to buyers across Melbourne weighing up whether to wait for the Reserve Bank’s March decision was blunt.
“Hesitation equals heartbreak.”
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