Fewer vendors testing market at auction as clearance rates slide

The proportion of properties going to auction in Australia has declined sharply since late 2025, with vendors increasingly opting for private treaty sales as buyer demand softens, according to data from Cotality's latest Housing Chart Pack.

The national share of auctions relative to new listings dropped from close to 45% in November 2025 to just above 30% in June 2026.

Cotality attributed the broader cooling in sales volumes to the cumulative effect of interest rate rises, cost-of-living pressures, uncertainty, and policy changes weighing on property demand.

"The decline in clearance rates since late last year has captured a lot of headlines," said Gerard Burg (pictured right), head of research at Cotality Australia. "Given that the auction market has a strong seasonal trend, typically stronger in the spring and weaker in winter, it is important to look through these factors to see the underlying trends in the market.

"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."

Rising withdrawal rates and a growing tendency to sell ahead of the scheduled auction date have reinforced the shift, indicating vendors are less willing to expose a property to the risk of a failed public campaign.

Sydney and Melbourne lead the retreat

The move away from auctions has been most pronounced in Sydney and Melbourne, which together account for the bulk of national auction activity and typically set the tone for the broader market.

Monthly auction numbers in both cities have fallen more steeply than the overall decline in new listings, suggesting the trend reflects structural changes in vendor behaviour rather than seasonal patterns alone.

The pullback is not confined to traditionally high-volume auction markets. Brisbane and Adelaide, where private treaties already dominate, have also recorded a growing preference for private sales in recent months.

"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."

With auction share currently sitting just above 30%, historical data suggests further contraction is possible. The long-run average for auction listings is approximately 28%, indicating that the balance between auctions and private treaties has yet to fully normalise.

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