Warning for Victoria homebuyers after Reserve Bank rate hold

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Apollo Auctions Victoria director and auctioneer Andy Reid - for herald sun real estate

Melbourne’s auction market is defying winter expectations, with fierce competition, limited stock and rising pressure on first-home buyers.

A shock Reserve Bank decision to hold the nation’s cash rate in place this week has sparked a warning that Melbourne’s usually busy spring auction market will be delayed.

According to PropTrack there are 586 homes scheduled to go under the hammer this week, half the numbers seen as recently as last month and down 9 per cent on the same time last year.

Belle Property Victoria director Anthony Webb said the RBA’s decision to hold the nation’s cash rate and wipe expected increased borrowing capacity from buyers’ budgets came at the same time as auction volumes were down for the school holidays,

And Mr Webb has warned it’s likely Melbourne will have lower volumes of homes for sale in September as a result of the decision.

“Now, it’s more likely we’ll see that real spring momentum delayed until October or even November,” Mr Webb said.

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This weekend, outer suburbs are hosting some of the biggest auction numbers with Tarneit leading at 15 auctions, followed by Craigieburn, Wollert, and Reservoir, all with 13 each.

Another 691 auctions are already booked for next week, reflecting a 19 per cent year-on-year drop in volume, but experts say the decline in listings hasn’t translated into a drop in buyer interest.

F18whpro Generic image of various auctions in Canterbury, Melbourne. Real estate. House auction. Pic. Mitch Bear

More than 580 homes are going under the hammer across Melbourne this week, with Tarneit, Craigieburn and Reservoir leading the action. Photo: Mitch Bear

Belle Property/Hocking Stuart state director Anthony Webb.

Apollo Auctions Victoria director Andy Reid said it was likely those sellers should do well this weekend, as interest rate uncertainty hadn’t dampened demand, especially for practical, family-friendly homes in accessible locations.

“It’s the straightforward homes, three beds, two baths on manageable blocks, that are flying,” Mr Reid said.

Apollo Auctions Victoria director and auctioneer Andy Reid. Picture by Wayne Taylor

M R Advocacy director Madeleine Roberts said savvy investors and rentvestors would capitalise on the pause while many first-home buyers stay on the sidelines, unsure whether to wait or act.

“The mistake I see first-home buyers making is hesitating,” Ms Roberts said.

“They’re holding out for the next rate cut, but by the time it arrives, competition will be stronger and prices will likely be higher.”