Australian home sellers overwhelmingly turning their backs on auctions in dire market

Australian home sellers are increasingly turning away from auctions as market conditions worsen, with auction activity falling sharply from a 2025 peak. Data from property analytics firm Cotality shows the share of auctions to new listings dropped from 45% in November 2025 to just above 30% in June 2026. The report links the shift to declining clearance rates, demand-side pressure, and the growing risk of auction failures. It also cites policy changes affecting investor sentiment, including limits on negative gearing for new builds and properties bought before budget night, and the scrapping of the capital gains tax discount in favor of an inflation-adjusted model with a minimum 30% rate. The Reserve Bank of Australia has hiked the cash rate three times since early 2026. While the national clearance rate rose to 54.8% last week, auction numbers fell 8.7%, and Sydney and Melbourne prices declined 3.2% and 2.6% respectively.