While the expectation is that falling interest rates will boost buyer confidence, current conditions indicate vendor confidence has already driven a significant increase in listings. Listings are up nearly 40% since December 2025 (Raine & Horne), and appraisals are surging (Raine & Horne). Selling now means entering a market with rising competition, but delaying may mean facing further rate increases and a potentially more challenging environment later in 2026.
The question of timing is central for vendors right now. Everyone is anticipating rate cuts, and the logic is sound – lower rates mean increased borrowing capacity and, theoretically, more buyers. However, the market doesn’t operate in a vacuum. We’ve already seen a substantial lift in listings from vendors who previously held back, and the recent RBA rate hikes in February and March 2026 have introduced a new layer of caution into buyer behaviour (Domain).
Why selling now could be advantageous
Melbourne’s price recovery is underway, and selling into improving conditions is generally preferable to waiting for a potential trough. The buyer pool improved significantly through 2025 as rates were cut, although this has been partially offset by the recent RBA increases. Crucially, listed stock competition is rising – and will likely continue to do so – meaning more competition for vendors if they delay listing their property. Victoria’s state taxes are also a factor; historically, they’ve trended upwards, potentially impacting investment property returns.
The tax implications of timing
For those considering selling an investment property, the timing around the financial year-end can be significant. Settling before 30 June 2026, particularly in a year of lower personal income, may result in a lower capital gains tax (CGT) liability. Negatively geared investors carrying ongoing costs should carefully assess whether waiting for further capital growth justifies those expenses. The erosion of net yields from stacked state taxes is also a growing concern for investment property holders.
What if I wait for rates to fall?
KPMG projects 6.6% Melbourne house price growth for 2026, but this was before the recent RBA rate hikes. ANZ has revised its forecast to -1.7% following the March 2026 increase, highlighting the current uncertainty. If your property is positively geared or near-neutral, holding costs are less of a concern, and deferring CGT allows you to control when you crystallise your tax liability. Long-run structural drivers – undersupply, population growth, and rental vacancies – continue to support medium-term value appreciation.
The real uncertainty — the appraisal spread
Appraisals are becoming more varied. While demand was strong through late 2025, the recent rate increases have introduced a wider range of buyer reactions. This means the gap between the highest and lowest appraisals is widening, making it harder to confidently price a property. It’s more important than ever to rely on an agent’s experience and local market knowledge to navigate this complexity.
Frequently asked questions
Will the RBA rate cuts definitely increase property prices?
Rate cuts are expected to support prices, but they aren’t the sole driver. Buyer confidence, economic conditions, and the level of stock on the market all play a role. The recent RBA hikes demonstrate that rates aren’t moving in a single direction, and buyer urgency has dampened as a result (Domain).
What’s happening with listings in my area?
Listings across Australia are up 3% year-on-year (Raine & Horne, early 2026), with significant increases reported since December 2025. Appraisals are also surging, indicating more vendors are preparing to sell. We’re seeing this particularly in Melbourne’s eastern suburbs and on the Mornington Peninsula.
How long does it typically take to sell a property in Melbourne now?
Settlement periods in Melbourne are typically 60–90 days, allowing for coordinated buying and selling. Selling first removes bridging finance risk, but may require temporary accommodation. Buying first secures a property but carries the risk of owning two if your sale takes longer.
What impact do state taxes have on my decision?
Victoria’s state taxes, particularly for investment properties, can erode net yields. Historically, these taxes have increased incrementally, and further increases are possible. This is a key consideration for long-term investors, as it impacts overall returns.
Questions to ask your agent
- Based on recent sales in my street, what’s the likely range of appraisals I should expect?
- What’s your strategy for managing buyer expectations in the current market, given the recent rate increases?
- Can you provide a detailed breakdown of marketing costs and a realistic timeline for selling my property?
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.