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Spring auctions start slow as volumes slump but clearance rates hold

Published Sep 5, 2026
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Summary:
  • Nearly 1,500 capital-city homes went to auction this weekend, down 31% from a year earlier, according to Cotality.
  • Cotality's Tim Lawless said volumes have held steady week to week but remain more than 30% below 2025 levels for a fourth straight week, with about 1,900 auctions expected late this month.
  • Bloomberg Economics' James McIntyre blamed weaker sentiment on interest rate hikes, fallout from the Iran war, and shifts in government taxes, noting these have "rocked buyer confidence," and on Sept. 1 he wrote: "Australian housing cycles average 11 months from peak to trough, pointing to declines continuing into the first quarter of 2027."

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.

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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."

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