The momentum in Melbourne’s housing market has officially returned. It’s showing up strongly for our local customers by hitting its highest levels in 3.5 years with an impressive $1.083 million median. The Victorian capital city is on track to surpass its October 2021 peak, with just under $10,000 standing in the way, according to Domain’s September quarterly house price report. The median is up 2.2% this quarter and 6.2% over the past year, highlighting the city’s strong growth momentum isn’t just a blip.
We’re seeing the impact first-hand within the Nelson Alexander network. Our figures show the average sales result across the Nelson Alexander network was $1,150,676 last quarter, 14% higher than all other agencies combined. This outstanding result demonstrates the difference a tailored, local approach can make in achieving strong outcomes.
Melbourne is proving its market is not just active, but also competitive. Last weekend, Nelson Alexander achieved an 87% auction clearance rate, significantly above the REIV benchmark of 72%, highlighting strong buyer demand in our footprint. This result reflects the strength of our expert auctioneering programme, which combines tailored marketing, strategic timing, and skilled negotiation to maximise outcomes for our vendors across Melbourne.
Key drivers include:
- Improved borrowing capacity: As interest rate cuts flow through the system, more buyers are able to participate.
- Updates to the First Home Buyers Guarantee Scheme is encouraging more buyers to enter the market.
- There are fewer properties on the market, supply is down, and demand is up. This tight supply means buyers need to act quickly when they find the right home. There are now 17% fewer homes listed for sale on realestate.com.au than has been typical over the past eight years.
- With property values rising in multiple cities at the same time, more buyers are feeling confident and active in the market leading into Christmas.
What It Means for You:
For vendors, the rising demand and limited supply mean that positioning your property strategically can deliver outstanding results. With the countdown to Christmas now on, entering the market before the summer holidays gives you the chance to secure a result now and enjoy peace of mind over the festive season, knowing your property is on the market under optimal conditions.
For buyers, with fewer properties available and strong competition, being prepared to act quickly is essential to securing the right home in this active market.
Whether you’re planning to sell now or in the new year, understanding the momentum behind Melbourne’s market and the nuances of its continual shifts is essential. With national property values climbing at their fastest rate in four years, the right timing and preparation can make all the difference.
At Nelson Alexander, we have the expertise and local insight to guide you through every stage of the market. Our team understands the trends shaping property right now, and how to help you make confident, informed decisions.
If you’ve been wondering where your home sits in today’s market, we can help. An obligation-free appraisal offers a clear picture of your property’s value and confidence in whatever comes next.
Chat to your local Nelson Alexander agent today or complete the form below.
