What happened this weekend
Spring opened on a quieter note. Cotality counted close to 1,500 auctions across the capitals, a 31% slide from the same weekend last year. Clearance rates broadly held up, but fewer sellers are testing the market following the government's May property tax changes.
The market picture and near-term outlook
According to Cotality's research director, Tim Lawless, auction totals have been steady in recent weeks; however, compared with 2025 levels, volumes are still lower by over 30%. It is the fourth straight week that activity is more than 30% under 2025 benchmarks. Cotality expects momentum to lift over the next fortnight, with around 1,900 auctions penciled in toward the end of the month.
Where Sydney fits in
Sydney showed a bit more spark. Sydney's clearance rate rose to 57.7% - its highest level in 18 weeks - with 523 homes put to auction. Even so, the city's auction count was about 28% lower than the comparable weekend a year ago, Cotality said.
Even when timing feels uncertain, steady contributions pay off over time, so download the free Always Be Buying E-Book
What investors should watch
Bloomberg Economics' James McIntyre expects the downswing to continue. He pointed to back-to-back Reserve Bank rate hikes, knock-on effects of the Iran war, and fresh tax changes as the combination that has "rocked buyer confidence." In a Sept. 1 note he added: "Australian housing cycles average 11 months from peak to trough, pointing to declines continuing into the first quarter of 2027."
