Selling now captures the strong growth of 2025, where median house prices rose 11–14%, but February and March 2026 RBA rate hikes have introduced new buyer caution. Renovating is a viable alternative if focusing on high-ROI areas like kitchens and bathrooms, though current market uncertainty suggests a cautious approach to capital expenditure.
The decision depends on whether your property value is driven by land or dwelling quality. While the market saw significant gains through 2025, the March 2026 quarter recorded a 0.6% drop in dwelling values (PropertyUpdate/Cotality).
The impact of recent rate hikes
RBA rate hikes in February and March 2026 have dampened buyer urgency (Domain). This follows a period of high vendor confidence in late 2025, where listings increased nearly 40% since December 2025 (Raine & Horne). Buyers are now more cautious, and the Melbourne median remains 1.3% below the March 2022 peak (PropertyUpdate/Cotality).
Renovations with the highest ROI
Kitchen and bathroom updates deliver the highest return on investment. In family-oriented suburbs across the eastern corridor, adding a double garage provides meaningful value. North-facing living areas and outdoor spaces also command a premium from current buyers.
Current inventory and competition
Vendor supply has increased, with appraisals surging over 75% month-on-month into early 2026 (Raine & Horne). While open for inspection attendances were up 3% year-on-year in early 2026 (Raine & Horne), the increase in available listings means properties must be well-presented to stand out.
The timing risk
Selling in April aligns with the Autumn season, the second-strongest period for Melbourne prices. However, the tension between high listing volumes and the dampened urgency caused by recent rate hikes makes the exact price outcome harder to predict than in 2025.
Frequently asked questions
When is the best time of year to sell a Melbourne home?
Spring (September–November) is the peak season with the highest buyer numbers and strongest auction clearance rates. Autumn (March–May) is the second-strongest period, often offering lower competition from other vendors. Winter is the quietest for volume, though motivated buyers remain active in the market.
Which property features currently add the most value?
Land size is the primary value driver in Melbourne’s middle and outer rings. For the dwelling, kitchens and bathrooms offer the highest ROI. Other high-value attributes include double garages in family suburbs, north-facing orientation, and period character features like Victorian or Edwardian details in inner areas.
How have Melbourne house prices trended since 2025?
Melbourne house prices rose from approximately $920,000 in January 2025 to between $1,020,000 and $1,050,000 by December 2025. However, the market shifted in early 2026, with dwelling values dropping 0.6% in the March 2026 quarter (PropertyUpdate/Cotality).
Is now a good time to renovate before selling?
Renovating can be effective if targeting high-ROI areas, but buyer urgency has dampened following RBA rate hikes in February and March 2026 (Domain). Ensure the cost of renovations does not exceed the potential price lift, especially as the market is currently 1.3% below the 2022 peak (PropertyUpdate/Cotality).
Questions to ask your agent
- Based on recent sales in our street, is the value currently driven by the land size or the internal condition of the home?
- How has the February and March RBA rate hike specifically affected buyer attendance and offer levels in this suburb over the last 30 days?
- If I spend $50,000 on a kitchen and bathroom update, what is the evidence that this will increase the final sale price by more than that amount?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.