Selling now captures a price recovery already underway and avoids rising competition from a growing pool of listings (Raine & Horne). Waiting may be preferable for positively geared investors relying on structural undersupply and a projected 2027 recovery (ANZ, Domain), though recent rate hikes have introduced buyer caution (Domain).
The Melbourne market is currently balancing the momentum of late 2025 against the impact of RBA rate hikes in February and March 2026. While vendor confidence is high, buyers have become more price sensitive (Mathew Tiller, LJ Hooker).
The case for selling now
Listing competition is increasing as more vendors gain confidence, with listings up nearly 40% since December 2025 (Raine & Horne). Selling before 30 June 2026 may also lower tax liabilities for those in a lower income year, while avoiding a potentially more onerous state tax environment.
The case for renting and waiting
Long-term drivers, including chronic undersupply and Australia’s fastest population growth, support medium-term appreciation. While ANZ revised forecasts to -1.7% following the March 2026 hike, other projections suggest Melbourne will outperform in 2027 (ANZ, Domain).
Buy and sell sequencing
In the eastern suburbs and peninsula corridors, simultaneous settlements of 60–90 days are the standard for upgrading or downsizing. Selling first removes the risk of bridging finance, whereas buying first secures the next home but risks carrying two mortgages if the sale stalls.
The rate hike risk
The February and March 2026 RBA hikes have dampened buyer urgency (Dr Nicola Powell, Domain). While open for inspection attendances were up 3% year-on-year in early 2026 (Raine & Horne), the pool of buyers is now more cautious than it was during the rate cuts of 2025.
Frequently asked questions
Is spring still the best time to sell in Melbourne?
Spring remains the peak season for auction volume and competition. Autumn is the second-strongest period, and February typically marks the post-holiday restart. While winter sees lower overall volume, the buyers active during June to August are generally more serious and motivated to purchase.
How do RBA rate hikes affect my sale price?
Rate hikes generally make the market more price sensitive (Mathew Tiller, LJ Hooker). The February and March 2026 increases have reduced buyer urgency (Dr Nicola Powell, Domain), meaning properties must be priced accurately to attract the current, more cautious pool of qualified purchasers.
Should I sell before or after buying my next home?
Selling first makes you an unconditional cash buyer, providing a stronger negotiating position and removing bridging finance risk. Buying first secures your next property in a competitive market but risks the financial strain of holding two properties if your sale takes longer than expected.
What are the tax implications of selling in 2026?
Vendors may see lower CGT liabilities by settling before 30 June 2026 if they are currently in a lower-income year. Additionally, investors should consider that state taxes continue to erode net yields, and the Victorian tax environment has a history of incremental increases.
Questions to ask your agent
- How has the 40% increase in listings since December (Raine & Horne) specifically impacted buyer competition in my street?
- Given the March rate hike, how has the profile of the buyer attending my open for inspections changed?
- What is the current average settlement period for similar homes in the eastern suburbs to avoid bridging finance?
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.