Sydney real estate agent Tom Panos recorded the worst auction day of a 30-year career as national clearance rates fell to 54.2 per cent and many sellers grew too scared to publicly list their properties. Leading auctioneer Tom Panos told his hundreds of thousands of social media followers that Sydney, Melbourne, and Brisbane are carrying the weight of a broader property downturn shaped by shifting tax policy, stubborn inflation, and looming interest rate hikes.
Auction Clearance Rates Plunge Across Major Capitals
National auction clearance rate figures show that just 54.2 per cent of houses going to auction across the country actually found a buyer. In Brisbane, more than two in three auctions failed, leaving the city with an auction clearance rate of only 30.5 per cent according to Cotality data. Meanwhile, Sydney recorded a successful auction rate of 56.1 per cent, and Melbourne tracked at 54.6 per cent.
Tom Panos described his weekend results on social media after failing to secure a single bidder. “Today was the worst auction day of my real estate auction career. I’ve been doing auctions for 30 years. Today was the worst. Zero out of six,” he said, noting that he did not have a single person register to bid.
Sellers Grow Too Scared to Market Publicly
Falling prices and a 50-50 chance of an unsuccessful auction have left property vendors reluctant to test the open market. According to Tom Panos, two-thirds of the Sydney houses that sold during the week actually sold prior to auction day. “That tells you many sellers that are going to auction, they’re too scared to market publicly,” he said.
This market hesitation follows major changes to negative gearing and capital gains taxes announced in May. Furthermore, over the past three months, Sydney house prices have fallen 12 per cent on annual terms, intensifying the pressure on property owners.
Did you know?
According to Cotality data, the broader Australian property market does not operate as a single entity. Tom Panos points to a fragmented landscape featuring a dozen markets across high-end, medium, and low-end brackets, alongside regional variations in Sydney, Melbourne, and Brisbane.
Interest Rate Hikes and Sharemarket Pressures
Economic headwinds continue to mount as the sharemarket estimates a 37 per cent chance of another interest rate hike next month following three consecutive increases earlier this year. Markets also price in a higher chance of a further increase in September.
“All I can say to you is God help us on August 11. We definitely do not need a rate rise in the real estate market,” Tom Panos warned his followers regarding the looming central bank decisions.
Public Sentiment on Property Valuations
Consumer sentiment heavily favors a correction in home values, according to the Resolve Political Monitor Poll. Published this month, the poll surveyed 2,252 people and revealed that 61 per cent of Australians actually want property values to fall.
Support for lower house prices spans across political lines in the poll data:
- Labor voters: 73 per cent support bringing down house prices.
- Greens voters: 63 per cent support lower values.
- Coalition voters: 58 per cent support a market drop.
- One Nation voters: 55 per cent want to see prices fall.
Additionally, 35 per cent of survey respondents stated they would need to see a 20 per cent fall in house prices before they could personally afford to enter the property market.
Frequently Asked Questions
What is the current national auction clearance rate?
According to recent figures, the national auction clearance rate stands at 54.2 per cent for houses going to auction across the country.
Why are sellers avoiding public auctions?
According to agent Tom Panos, falling clearance rates and a 50-50 chance of an unsuccessful public auction have left many vendors too scared to market their properties publicly, prompting a rise in pre-auction sales.
How do Australians feel about falling property values?
Data from the Resolve Political Monitor Poll shows that 61 per cent of Australians want property values to fall, with 35 per cent noting they need a 20 per cent price drop to afford a home.
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