Auction retreat prompts more measured buyers, brokers say

New data from property data company Cotality found that the national share of auctions to new listings dropped from its November 2025 peak of almost 45 per cent to just over 30 per cent in June 2026.

The pullback was led by Australia’s two largest auction markets: Sydney and Melbourne.

The trend mirrors the broader slowdown in the housing market, with Sydney and Melbourne also leading recent declines in home values. Home values in the NSW capital fell by 1.2 per cent over June, followed by Melbourne, down 1.0 per cent.

Overall, national dwelling values fell 0.4 per cent in June and 0.7 per cent over the quarter.

‘Confidence tested’

Cotality’s report said that falling clearance rates, a rise in withdrawn auctions, and an increase in pre-auction sales all point to sellers becoming more cautious.

“What we have observed over the past few months has been a steady decline in sales volumes as demand-side pressures have built, meaning that there have been fewer buyers in the market. This goes well beyond just the normal seasonal trend,” Cotality’s head of research Gerard Burg said.

While the shift has been most pronounced in Sydney and Melbourne, Cotality said that traditionally private treaty markets such as Brisbane and Adelaide were also exhibiting similar trends.

Paolo Llave, senior broker at Berti Financial, told Broker Daily that he had seen a slowdown in the number of clients actively looking to purchase, both in owner-occupier and investor markets.

“Buyers are more cautious, particularly first home buyers, with uncertainty around property prices and borrowing capacity impacting confidence,” Llave said.

“On the other hand, well-positioned buyers with strong borrowing capacity are seeing the current market as an opportunity. With less competition and more room to negotiate, some are able to secure properties on more favourable terms.”

Tristina Haines, mortgage broker for More Than Mortgages, said: “We are definitely seeing buyers approach the market more strategically. There is less of the urgency we experienced in previous years, with many clients taking more time to review properties, understand repayments, and ensure they are comfortable with their purchase decision.

“Having finance organised upfront is still really important, but the conversation has shifted more towards understanding affordability, future flexibility, and making sure the numbers stack up rather than simply trying to secure a property at any cost.”

More room for private treaty

According to Cotality’s report, vendors are increasingly opting for private treaty sales rather than risking an auction campaign in a weaker market.

The report found auction activity remains above its long-term average of around 28 per cent, saying there could be further room for private treaty sales to gain market share if buyer demand remains subdued.

Vendor discounting has also started to increase, with the median discount across the combined capitals rising to 3.6 per cent, reflecting improved negotiating conditions for buyers.

In Perth, Broker Daily reported that three in 10 properties were now selling below their listing price, a far cry from the city’s heated market earlier in the year.

Burg said that seller behaviour mirrors the strength of buyer appetite.

“During times of strong demand, vendors clearly favour auctions as competition between multiple bidders can result in a higher price,” Burg said.

“However, they have been shying away more recently in this weaker demand environment. This has been seen in an increasing tendency to sell ahead of the auction date as well as a rise in withdrawals, pointing to vendors who are increasingly unwilling to test the market at an auction and have the property fail to sell.”

Brokers also said that the pullback from auctions contributed to pushing conditions towards the buyer.

Llave said private treaty sales could also give buyers more time and flexibility throughout the purchasing process.

“A buyer who knows exactly how much they can borrow and where their limits are is in a much stronger negotiating position,” he said.

Brett Sutton, broker for Two Red Shoes, said that there was also a finance-related drawback to auctions.

"Auctions can genuinely complicate the finance process ," he said.

"Buyers are often bidding subject to finance being effectively pre-approved and unconditional, which means less room to move if something changes with the loan or the valuation comes in short. Private treaty gives buyers and brokers more breathing room to work through conditions properly before it's locked in."

"For buyers, especially first timers and owner-occupiers, private treaty means a less pressured environment, but also more opportunity for negotiation. They're starting to shop around more, and that's translating into more detailed questions on finance options and flexibility."

He added: "From a broker's perspective, it shifts the dynamic somewhat. We're spending more time on scenario planning with clients, running through "what if" cases, and helping them navigate longer negotiation processes. There's also a renewed focus on ensuring pre-approvals are as strong as possible - sellers are less likely to accept conditional offers."

[Related: Business confidence returns, but SMEs remain cautious on credit]

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