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Rates Rise Again – What It Means for Melbourne Property

The Reserve Bank has lifted interest rates again, pushing the cash rate to 4.35%, and for Melbourne homeowners, buyers, and investors, this one hits close to home.

Inflation is proving stubborn, and while the goal is to bring it under control, the immediate impact is clear: borrowing is more expensive, and household budgets are tighter.

So, what does this mean for the Melbourne market?

For homeowners:
Mortgage repayments are set to increase again, putting added pressure on cash flow. Some owners may start reassessing their position, which could lead to more properties coming onto the market in the months ahead.

For buyers:
Borrowing capacity has taken another hit, but there’s a silver lining. Less competition and a more balanced market are creating opportunities for well-prepared buyers to negotiate and secure better deals.

For sellers:
The market hasn’t stopped, but strategy matters more than ever. Pricing, presentation, and timing are critical. Buyers are more selective, so standing out is key to achieving a strong result.

For investors:
Higher rates continue to squeeze yields in the short term, but rental demand remains strong across Melbourne, helping to offset some of the pressure.

What’s next?
There’s still uncertainty around whether further rate rises are coming. If inflation remains high, the RBA may not be done yet. That said, the market is proving resilient, and Melbourne continues to benefit from population growth and strong long-term fundamentals.

The bottom line:
This isn’t a market to “wait and see”, it’s a market to understand and act strategically.

Whether you’re thinking of buying, selling, or just want to know where you stand, having the right advice right now can make a significant difference.