Written 29 September 2026. Figures and rules are current as at that date.
Two things changed for Melbourne sellers in the last week of September 2026. On 29 September the Reserve Bank lifted the cash rate to 4.60%, and on 1 October 2026 Victoria's new underquoting rules began. One affects how much buyers can borrow. The other changes how every home is priced in public.
Neither is a reason to panic. Both are reasons to plan your campaign properly.
The Short Answer
On 29 September 2026 the RBA raised the cash rate by 0.25 percentage points to 4.60%, its fourth increase of 2026. Melbourne values were already down 4.7% over the year to August 2026, and buyers had more choice than they had had in some time. From 16 October 2026, an auction or fixed-date sale can only go ahead if the seller's reserve has been published as a single dollar figure at least 7 days beforehand. Sellers who price from real evidence and present their home to stand out are best placed in spring 2026.
1. What the rate rise means for buyers
The 29 September 2026 decision took the cash rate to its highest level in years. The Board pointed to inflation still running above target and left the door open to further increases if it does not ease.
Every rise trims what buyers can borrow and adds to their monthly repayments. More importantly, it knocks confidence. The buyers still in the market are genuine, but they are careful. They compare more homes, take longer to decide and negotiate harder.
That does not stop good homes from selling. It does mean the price, presentation and campaign need to be right from the first weekend.
2. Where Melbourne's market sits
Cotality's figures to 31 August 2026 show a market that has softened steadily:
- Melbourne values fell 1.1% in August 2026, 3.9% over the quarter and 4.7% over the year.
- The median dwelling value was $786,718, about 6.8% below the March 2022 peak.
- Across the capital cities, total listings were 24% higher than a year earlier in the four weeks to 30 August 2026, while new listings were 6% lower.
- Melbourne's preliminary clearance rate on AFL Grand Final weekend (26 September 2026) was 48.8% across 286 auctions, down from 56.3% the week before.
The listings figures matter. Stock is not flooding in. It is building up because homes are taking longer to sell. Cotality also expects the usual spring lift in new listings to be weaker than normal in 2026.
For sellers, that cuts both ways. Buyers have more to choose from, but fewer fresh homes are arriving to compete with yours. A well-presented property that is priced correctly can still stand out.
3. The new price rules, in plain English
The changes began on 1 October 2026. The key points for sellers:
- Reserve published upfront. For auctions and fixed-date sales from 16 October 2026, the agent must publish your reserve at least 7 days before the sale. It must be a single dollar amount, with no "from", "over" or "+".
- No reserve, no auction. If the reserve has not been published 7 days out, the auction or fixed-date sale cannot go ahead.
- A new Property Price Statement. It replaces the Statement of Information, sets out key features of your home and of comparable properties, and must appear prominently in online advertising.
- Sold prices go public. For sales that become unconditional from 1 October 2026, the agent must add the sold price within 7 days and keep it publicly available for at least 18 months.
The official detail is on the Consumer Affairs Victoria website.
4. What this means for your sale
Your reserve becomes part of your marketing. Buyers will see it a week before auction day. A reserve set on hope will be visible to every buyer in the market, and it will keep people from registering. A reserve built from real evidence gives buyers the confidence to turn up and bid.
The price conversation happens earlier. Under the old approach, many reserves were settled the night before. Now it needs to be locked in before the final week of the campaign. That should be planned from day one, not left until the end.
Comparable evidence gets clearer. Sold prices will be public for 18 months, so buyers, sellers and agents will all be working from the same numbers. That rewards accurate pricing and makes inflated appraisals easier to spot.
Private sale is still on the table. The reserve rules apply to auctions and fixed-date sales. In a market where buyers are cautious, a well-run private sale can suit some homes better. It depends on the property and the buyer pool, not on habit.
5. Should you sell now or wait?
Nobody can promise where rates go from here. As at 29 September 2026, some economists thought 4.60% was the peak, while others expected one more rise. The next RBA decision is on 3 November 2026, which is also Melbourne Cup Day, so expect a quiet auction weekend around it.
Waiting for certainty rarely delivers it. A better question is what you are doing next. If you are selling and buying in the same market, a softer market affects both sides of the move, and the gap between them is what really counts.
Director's Tip
Director's Tip: Set the reserve from the evidence, not the hope. Under the new rules, buyers see it a week before auction. A realistic figure brings registered bidders, while an ambitious one keeps them at home. Decide it early, using the same comparable sales that will appear on your Property Price Statement.
Frequently Asked Questions
What did the RBA do on 29 September 2026?
The Reserve Bank lifted the cash rate by 0.25 percentage points to 4.60% on 29 September 2026, its fourth increase of 2026. The next decision is due on 3 November 2026.
When do the new reserve price rules start?
The rules began on 1 October 2026 and apply to auctions and fixed-date sales from 16 October 2026. The reserve must be published as a single dollar amount at least 7 days before the sale, or the sale cannot go ahead.
Will my sold price be made public?
Yes. For sales that become unconditional from 1 October 2026, the agent must update the Property Price Statement with the sold price within 7 days and keep it publicly available for at least 18 months.
The Bottom Line
Higher rates and softer values have made buyers careful, and the new rules put every seller's price in plain view. That rewards sellers who price from evidence, prepare their home properly and plan the campaign before it starts. It punishes guesswork.
Get Your Reserve Right From Day One
The new rules make pricing the most important decision in your campaign. An appraisal shows where your home sits against the sales that buyers will actually compare it with.
Book an appraisal with Fornieri & Azar for a clear view of likely value, current competition and the right way to take your home to market.
