Australian home buyers shun auctions as property prices fall

Potential home buyers in Australia are increasingly avoiding property auctions and open homes as falling prices and economic uncertainty dampen confidence. Average active bidders per auction have dropped below two, and open‑home attendance is down to about two visitors per showing, far lower than the three‑to‑four typical in stronger markets. Auction clearance rates have lingered below the 60 % level considered balanced.

National Australia Bank cut its price outlook, now expecting dwelling prices to decline 5 % across capital cities this year, with peak‑to‑trough falls of around 10 % in Melbourne and Sydney. Ray White data underpin the buyer‑activity trends, while buyer‑advocate Cate Bakos described the market as “scaredy‑cat” and a “herd mentality”. Ray White chief economist Nerida Conisbee noted that while bidding continues, the market reflects much slower conditions and far fewer participants.