What a Softer Market Means for Buyers Right Now
Written by Michael Lawes
Australia's property market has shifted. Rising interest rates, affordability pressures, and the federal budget's proposed tax changes have taken the heat out of buyer demand and it's showing up in the numbers.
Sydney, Melbourne, and Canberra are leading the pullback, with prices drifting lower since the start of the year. More listings, longer selling times, and vendors with genuine motivation to negotiate are becoming part of the landscape again.
For buyers who are prepared, that creates a different set of opportunities. Here's what's actually worth paying attention to.
Prices are moving, but affordability is more than just price
Values have declined across a number of markets. Auction clearance rates have crashed to their lowest level since the start of the pandemic, sitting below 50% in some cities, and ANZ Research expects Sydney to finish the year down 0.7% and Melbourne to ease 1.7%. Entry points are shifting.
But lower prices don't automatically mean easier buying. Higher interest rates still affect how much you can borrow, and that's the number that matters most when you're working out what's realistic. It's worth knowing your borrowing capacity before you get too far into a property search.
Less competition, more room to negotiate
Buyer competition has eased in many areas. Where the balance has shifted toward buyers, vendors are showing more flexibility on price, conditions, and settlement terms than was typical at the peak.
According to Cotality's June 2026 Housing Chart Pack, vendor discounting has started to rise, with the median discount across the combined capital cities now sitting at 3.3% — reflecting improved negotiating conditions for buyers. The proposed changes to negative gearing and the CGT discount have added further uncertainty for investors, with some agents already adjusting price guides accordingly.
Properties are also sitting on the market longer in many areas, which gives buyers more time to research, compare, and negotiate without the pressure that defined the last few years.
Different conditions, different selling methods
As auction clearance rates fall, more vendors are turning to expressions of interest or private treaty sales. For buyers, this is worth understanding.
An EOI process invites written offers by a set date, including preferred terms and conditions. More considered, less reactive. Private treaty lists a price and opens the door to negotiation. Both give you more time and the ability to include subject-to-finance or building and pest clauses in your contract.
Auctions, on the other hand, can still attract competition depending on the property. If you're heading to one, come prepared and know your ceiling before you raise your hand.
The opportunity is in being ready
A softer market rewards preparation. Knowing your borrowing capacity, having your finance in order, and understanding what you can realistically target puts you in a much stronger position when the right property comes up.
If you want to understand where you stand before you start looking, reach out and we can run through your options.
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