Hi,
The Domain auction clearance rate came in at 59% over the weekend from a reasonable number of auctions. There were 373 auctions reported, with 221 properties selling under the hammer, 65 withdrawn and 87 passed in. That’s down from the 66% final clearance rate recorded for the same weekend last year. The REIV also reported another 412 private sales.
Cotality has released its July 2026 property price data, and it’s not only Melbourne and Sydney experiencing price falls, but now Brisbane and Adelaide as well. Sydney recorded the largest quarterly fall at 1.4%, followed by Melbourne at 1.2%, Brisbane at 0.6% and Adelaide at 0.2%.
However, this is not occurring evenly across all segments of the property market. It is the upper-end family home market that has been most affected, while more affordable properties are still selling well and generally under strong competition.
Sentiment in the property market has deteriorated and many buyers are still sitting on their hands. While the Federal Government introduced measures aimed at helping first home buyers, the major banks are reporting a noticeable decline in home loan approvals, with first home buyer applications being among the hardest hit. Investor loan applications are also well down and, despite the Federal Government’s incentives for investors to purchase newly built properties, many investors appear to be delaying purchasing decisions altogether.
There was, however, some encouraging news last week. The latest inflation figures came in better than expected, making another interest rate rise look less likely than it did only a few weeks ago. While another increase cannot be ruled out, there is a chance that we have reached the peak of the interest rate cycle. That should provide some much-needed stability for buyers and sellers alike.
Looking ahead, there are a couple of reasons for cautious optimism. The prospect of a change in the Victorian Government later this year, together with the recent change in Premier, could improve confidence in the state. If that occurs, combined with greater certainty around interest rates, my feeling is that the next three to four months could present some of the best buying conditions we’ve seen for some time before prices begin to rise again, which could be as early as February next year.
Have a great week.
Kim Easterbrook – Managing Director
