December 2025

• Melbourne Market Update

• The January Myth: Why Summer Might Be the Smartest Time to Buy

• On‑the‑Ground Insight

• Step Inside!- This Surrey Hills Victorian property

Melbourne Market Update

• Prices:
  Melbourne dwelling values have continued their gradual recovery into year-end. CoreLogic data shows values up around 0.3–0.4% over the past month, with prices now roughly 1% higher over 2025 overall, clawing back much of the decline seen in 2024.

• Auctions:
  Auction volumes have slowed through December, as expected, but clearance rates remain resilient in the high-60% to low-70% range. Well-located, turnkey homes continue to attract competition, while secondary stock is becoming more price sensitive.

• Listings:
  Advertised stock remains constrained, sitting roughly 10–15% below the five-year average across Melbourne. Many Spring campaigns that failed to sell have now been withdrawn rather than re-listed, quietly tightening supply heading into January.

The January Myth: Why Summer Might Be the Smartest Time to Buy:

There is a long-held belief that nothing happens in real estate in January. Buyers assume agents are away, listings dry up, and serious opportunities do not reappear until February.

In reality, January can be one of the most strategic windows of the year for buyers who are prepared.

The biggest advantage is competition. While many buyers switch off over the holidays, the smaller group who stay active often find themselves negotiating with far fewer rivals. Fewer bidders at auction or fewer competing offers can materially change outcomes.

Another overlooked factor is vendor motivation. Many sellers launch campaigns in Spring hoping to secure a result before Christmas. When that does not happen, January becomes a pressure point. Vendors are often keen to move on, reset, or begin searching for their next home, and certainty becomes more appealing than waiting for February.

This is also when off-market and quietly repositioned properties re-emerge. Homes that were publicly listed earlier in the year may be withdrawn, paused, or discreetly offered to buyers who are ready to act. These opportunities rarely appear on major portals, but they are very real and often surface over summer.

February typically brings more listings, but it also brings more buyers. Families return from holidays, school terms resume, and buyer urgency increases quickly. Competition lifts and negotiating leverage shifts back toward sellers.

For buyers who are organised, with finance in place and a clear suburb focus, January can offer something rare: choice without chaos. It is not about buying cheaply at any cost, but about buying well, with less noise and more control.

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On-the-Ground Insight:

On the ground, the market is clearly moving at two speeds.

In the sub-$1 million range, buyer activity remains solid. First-home buyers are still active, inspections are reasonably well attended, and well-priced homes continue to move.

Above $1 million, conditions are far more selective. Buyers are highly price sensitive and focused on value. Properties that are finished and well positioned are still attracting interest, but homes that require work or are priced ambitiously are proving slower to sell.

Several Spring campaigns are now taking longer than expected, with uneven enquiry levels. While some properties are achieving strong results, others are sitting quietly, reinforcing that pricing and presentation matter more than ever.

Step Inside!

6 Langford Street, Surrey Hills

This is a good example of a Surrey Hills home that successfully combines Victorian character with a layout that works for modern family living. Set on an 846 square metre block, it offers the scale and land size many buyers in this area prioritise, without the disruption of a major renovation.

The original part of the home provides the architectural appeal buyers are drawn to, while the extended living areas function well day to day. The kitchen and main living space connect directly to the rear garden, making the outdoor area a real strength of the property.

For families, the heated pool, established gardens and separate studio add flexibility over time. Importantly, this is a largely finished home, which will appeal to buyers wanting to move straight in rather than take on building works.

Key Features:
• 4 bedrooms, 2 bathrooms and multiple living zones
• Stone kitchen with Miele appliances and butler’s pantry
• High ceilings and retained Victorian features
• Living zones opening to garden and pool
• Heated pool and separate garden studio
• Secure off-street parking and garage

Indicative Price: $3,200,000 – $3,500,000
4 Beds | 2 Baths | 4 Cars | 846 m²

Buyer’sTip

If you are considering buying in January, use December to get organised. Clarity on finance and suburb focus matters far more than waiting for more listings.

Closing Thoughts

January is not a dead zone in real estate. It is simply misunderstood.

For buyers who are informed, prepared and willing to act while others pause, summer can provide genuine opportunities to negotiate calmly and secure quality property before competition returns.

If you would like to talk through a January strategy, whether that involves tracking off-market opportunities or understanding where vendor motivation is shifting, I am always happy to have a conversation.

Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.

Justin Valentine

www.phoenixba.com.au

0439 690 248