Setting a price guide is currently more effective for attracting serious buyers who have become more price-sensitive following February and March 2026 RBA rate hikes (LJ Hooker). While selling without a guide can drive competition, buyer urgency has dampened (Domain), and well-priced properties are selling faster than those requiring negotiation.
Deciding on a pricing strategy in 2026 requires balancing increased vendor confidence against new buyer caution. While listing volumes have risen significantly, the recent interest rate environment has changed how buyers engage with price guides.
Buyer sensitivity and RBA hikes
Buyer activity continues following interest rate rises, but the market has moderated and become more price-sensitive (LJ Hooker). The RBA rate hikes in February and March 2026 have dampened buyer urgency (Domain), meaning guides that are too high risk alienating the current buyer pool.
The impact of increased listings
Supply has increased, with listings up nearly 40% since December 2025 (Raine & Horne). In this environment, well-priced properties in private sale campaigns can sell within 1–2 weeks, while those requiring price negotiation typically take 4–8 weeks.
Underquoting and compliance
Victorian law prohibits advertising a property below the vendor’s reserve or the agent’s estimated selling price. Despite these rules, price guides set 10–15% below the eventual sale price remain common in inner and middle-ring Melbourne suburbs.
The forecast divergence
There is significant uncertainty regarding price direction for the remainder of 2026. KPMG projected 6.6% house price growth for the year, but ANZ revised its forecast to -1.7% following the March 2026 hike.
Frequently asked questions
How long does it take to sell a house in Melbourne?
Average days on market are slightly below the decade average as of March 2026 (Cotality). Auction campaigns typically run four weeks. Private sales for well-priced homes can conclude in 1–2 weeks, while properties requiring price negotiation generally take between 4–8 weeks to sell.
When is the best time of year to sell in Melbourne?
Spring (September–November) is the peak season for auction volume and competition, with Autumn (March–May) being the second-strongest. February marks the traditional post-summer restart, while buyer activity typically reduces significantly from mid-December through January.
Should I wait until 2027 to sell my property?
ANZ and Domain forecasts suggest Melbourne is likely to outperform in 2027. Waiting may be strategic if the property is positively geared, as long-run structural drivers like chronic undersupply and Australia’s fastest population growth support medium-term value appreciation.
What is the standard settlement period in Victoria?
Settlement typically occurs between 30 and 90 days after the contract is signed. For standard residential transactions in Victoria, a 60-day settlement period is the most common arrangement between vendors and buyers.
Questions to ask your agent
- Given the 10–15% guide-to-sale gap common in middle-ring suburbs, how will our guide be positioned to attract price-sensitive buyers without undercutting the reserve?
- How have the February and March RBA rate hikes specifically impacted open for inspection attendance and buyer urgency in this corridor?
- Based on current Cotality days-on-market data, does a private sale or an auction campaign currently offer a higher probability of achieving the reserve price?
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.