Melbourne's fastest-selling housing hotspots, buyers run out of time

News.com.au

4 days ago

Melbourne's housing market is picking up pace, with the speed of home sales accelerating in the past year — particularly in areas that had been struggling the most.
Latest PropTrack data shows the average days on market for the city's houses has dropped from 37 days in June 2024, to 36 days now.
A likely contributor to the fall is homes selling closer to their scheduled auction day, which along with rising median prices for the first six months of the year hints sellers are starting to find themselves in a stronger position than they were last winter.
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It's good news for the 775 auctions scheduled this week, which is down 13 per cent on the same time last year, and the about 760 homes slated to test the market next week.
But the news is even better in coastal and lifestyle suburbs, with PropTrack data showing the time it takes to sell in Frankston North, McCrae, Baxter and Capel Sound has been slashed to as little as three weeks.
McCrae led the Mornington Peninsula with the biggest drop in days on market, down from 62 to 41, while its median price reached $1.2m.
Frankston North's median jumped from $545,000 to $610,250, with days on market shrinking from 31 to just 22.
Baxter and Capel Sound also saw prices rise and days on market fall, while Langwarrin held firm with a $859,000 median.
Across Greater Melbourne, PropTrack figures show a broader uplift in activity, with 61,913 houses sold in June 2025, up from 55,774 a year earlier.
M R Advocacy director and broker Madeleine Roberts said coastal homes under $1m were being snapped up quickly.
'In Frankston North, homes are snapped up in under a month,' Ms Roberts said.
'Many buyers are frustrated and getting priced out if they hesitate even a week.'
Ms Roberts added that investors were back in the mix as rental yields remained strong and vacancies low:
'We're not in a boom, but we're in a correction,' she said.
'Days on market are a leading indicator, and the market is beginning to heat up again.'
Prominent Melbourne buyers advocate Cate Bakos said interstate investors were targeting suburbs like Frankston North for strong yields and capital growth.
'There's enormous pressure building at the lower end,' Ms Bakos said. 'We're not in a boom, but we are in a correction.'
Belle Property and HockingStuart Victoria director Anthony Webb said the subâ€'$750,000 entry point was rapidly shrinking, squeezing firstâ€'home buyers even as investor demand returned.
'There's a lot of interest in Frankston and Langwarrin,' Mr Webb said.
'With rate cuts expected, savvy buyers are trying to get ahead of the curve.'
On winter buying dynamics, Mr Webb said at entry level FOMO is kicking in:
'Move-in ready homes in the $750k –$1m range are still attracting strong interest, even in winter,' he said.
This weeks busiest spots for auctions will be Mt Waverley, with 19 auctions, followed by Wollert, 18, Mickleham, 16, Reservoir, 15, and Craigieburn, 13.