Property market: Auction rates hit historic lows as wary buyers shun sales - Nine.com.au

Australia's property market is currently facing a tough reality: auction clearance rate have hit historic lows, a level not seen since the early days of the COVID-19 pandemic in April 2020. Major capital cities like Sydney and Melbourne are reporting clearance rates below 50% for the week ending June 29, 2026, with Cotality data showing a national preliminary rate of 49.2%, expected to drop further to around 40% once all results are in. This deep freeze in sales signals that wary buyers are shunning auctions, directly impacting market momentum. This slowdown isn't a surprise; it's the result of a double whammy hitting the market. The Reserve Bank of Australia (RBA) has raised its cash rate three times this year, pushing borrowing costs higher and significantly reducing what prospective homeowners can afford. Adding to the pressure, the Federal Budget in May 2026 introduced substantial reforms to negative gearing and capital gains tax, set to take effect from July 1, 2027. These changes have dented investor confidence, making property investment less attractive, especially for existing established homes. Looking ahead, market experts are forecasting national dwelling prices to remain flat in 2026, with some predicting outright declines in major cities like Sydney and Melbourne. The current environment firmly establishes a 'Buyer's Market,' giving purchasers more negotiation power as properties are passed in more frequently. With the RBA maintaining a watchful eye on inflation and the long-term structural housing shortage still a pressing concern, the market's trajectory will hinge on incoming economic data and the full impact of these policy shifts, particularly as we approach the next spring selling season.