Melbourne real estate agents and mortgage brokers are saying homebuyers are gaining confidence off the back of the Reserve Bank’s recent interest rate cut.
Rising Consumer Sentiment in Melbourne’s Housing Market
In March, Victoria recorded a 15.3% jump in the Westpac Consumer Sentiment Index, up from an 11% increase in February, showing genuine optimism returning to the housing market.
Across the country, property market sentiment is also on the rise, but not as sharply as in Melbourne, where a 4.3% increase was recorded for March.
Increased Buyer Confidence and Competitive Bidding
Compton Green real estate agent Adam Welling told the Australian Financial Review that the turnaround in buyer confidence was noticeable as soon as the RBA cut rates for the first time in years.
“We instantly saw higher selling prices achieved at auctions or private treaties when the rate was cut,” he said.
“Week after week, we’re seeing buyers becoming more confident in buying before auction, and there’s also been a rise in competitive bidding at auctions, which are both signs of a bull market.”
Supporting this statement are the last fortnight’s auction clearance rates, which CoreLogic says have remained above 70% for both weeks.
Melbourne House Prices Show Signs of Recovery
House prices in Melbourne are also rebounding, with a 0.4% rise recorded last month—the first time they have not dropped in 10 months.
Loan Market mortgage broker Jacob Decru noted that mortgage pre-approvals jumped significantly at the start of 2025 as homebuyers anticipated the interest rate cut.
“We saw a strong pick-up in first-home buyers and upgraders getting ready to buy, and those who were pre-approved are now going ahead with their purchases, unlike last year when they were just letting it expire or roll over,” he told AFR.
“I think there’s a feeling that property markets will go up later this year and buyers don’t want to miss the boat.
“Last year, people were probably only going to buy if they got a bargain, because they didn’t feel like the market was right. But now that sentiment has turned strong again, they’re happy to pay market value.”
Increased Competition and Strong Auction Results
Melbourne buyers’ agent Cate Bakos has also seen a surge in competition between buyers for homes.
“We’ve seen much higher volumes of buyers, both from local areas and interstate investors, which are adding fuel to the market,” she told AFR.
“Auction attendance is higher, bidders are pushing harder, and I’m finding most properties have competitive interest.
“We’re constantly seeing strong results exceeding the reserve.”
With strong on-the-ground feedback from real estate agents, mortgage brokers, and buyers’ agents, Melbourne’s property market and buyer sentiment are regaining momentum.
