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With Melbourne’s auction clearance rates continuing to hold steady and talk of interest rate cuts now well and truly on the cards from the Reserve Bank of Australia (RBA), many are asking the question: Are we on the edge of the next phase of the property cycle?
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With the auction clearance rate holding firm hovering in the high 70s to low 80s depending on which data source you trust it’s easy to assume the property market is simply “stable.” And while that stability may suggest calm conditions, it’s actually masking a more complex story playing out beneath the surface.
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One of the big takeaways from this past weekend’s auction results is that the way a property is priced and positioned in the market can make or break its success. While Melbourne continues to see strong buyer interest and high levels of activity, we’re also seeing a clear shift in buyer behaviour and it’s something sellers and agents need to pay close attention to.
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We’re constantly bombarded with headlines about how an RBA rate cut will “save households money” as if that’s the only impact worth talking about. Yes, lower interest means smaller repayments, and that’s great. But what gets glossed over far too often is the real power of a rate cut: it supercharges borrowing capacity.
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With auction clearance rates sitting comfortably between 70% and 85%, the data tells us one thing clearly: Melbourne’s property market is not just alive it’s performing.
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