Interest rates to be a key driver for 2026 auction market

Despite the compressed timeframe, market sentiment remained strong with 27 per cent of properties selling prior to auction, reflecting urgency from both buyers and sellers to transact before the holiday period.

While media speculation around potential 2026 interest rate rises appeared to temper buyer confidence through December, we still recorded solid engagement with 3.9 registered bidders and 2.3 active bidders per auction. This activity, combined with reduced stock levels, delivered an impressive 80 per cent clearance rate - up 6.5 per cent on the previous year.

Our regional markets were a particular highlight, achieving 3.6 active bidders per auction and an exceptional 72.4 per cent clearance rate, representing a remarkable 17 per cent year-on-year increase. Metro markets also performed strongly with an 83 per cent clearance rate, up 6.4 per cent, despite a marginal softening in bidding numbers to 4 per auction.

Looking ahead, interest rate movements will remain the key market driver in 2026. While January auction volumes are naturally be subdued, February is shaping up to be extremely robust, setting a positive tone for the year ahead.