Why are Australian property vendors withdrawing homes from the auction market?

Australian property vendors are withdrawing homes because a rapid market slowdown has made sellers anxious that public auctions will not achieve their desired reserve prices. Data provider Cotality reported that many vendors are choosing to sit out the current property cycle or accept early, guaranteed offers rather than risk an unsuccessful public auction.

What are the main statistical changes in auction withdrawal and clearance rates?

Data from Cotality shows the weekly auction withdrawal rate climbed to 19% by June 21, up from 11.5% during the same period last year. Concurrently, weekly housing clearance rates across the market are approaching a record low of 40%.

How much did pre-auction sales and Sydney property prices change?

The proportion of properties sold before their scheduled auction date rose from 34.2% in May to 38.9% by June 21 according to Cotality. Over the same month-long period, home prices in the Sydney property market fell by 1.2%.

What policy changes are driving this Australian housing market downturn?

The national property downturn intensified after the federal government introduced budget changes that abolished negative gearing and capital gains tax concessions for property investors.

What is the maximum property market correction forecast by Morgan Stanley?

Analysts at Morgan Stanley forecast that the current Australian housing market correction could reach as much as 10% through the course of this downturn. If realized, this decline would make the current correction the worst the market has experienced in 40 years.

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More Aussie home sellers pull out of auctions

Written by Heidi Cuthbert Published Jul 5, 2026, 10:21 PM

Australian property owners are increasingly withdrawing homes from the auction market due to rising seller anxiety.
The withdrawal rate climbed to 19% as a growing housing downturn impacts national clearance rates.
Sellers are electing to sit out the cycle or accept early offers to mitigate the risk of unsuccessful public auctions.

Australian property vendors are increasingly abandoning traditional public sales, with data provider Cotality reporting that 19% of scheduled auctions were withdrawn in the week to June 21.

This current withdrawal rate contrasts with the same period last year, when only 11.5% of would-be vendors pulled their properties from the auction process.

"The trend towards selling prior is more just that unwillingness to take the risk that the auction might be unsuccessful and try to lock something a bit more guaranteed, even if it might be below what you were seeking," said Cotality Head of Research Gerard Burg.

Secondary figures show pre-auction sales jumped from 34.2% in May to 38.9% by June 21, while Sydney property prices fell 1.2% through June.

The shift in strategy comes as weekly clearance rates approach a record low of 40% amid broader global uncertainty.

The broader market slowdown intensified following federal budget changes that abolished negative gearing and capital gains tax concessions for property investors.

Analysts at Morgan Stanley have forecast that the current property market correction could reach as much as 10% through the downturn.