Australia's property market is entering a more disciplined phase, with Ray White Group CEO Performance and Value Thomas McGlynn saying buyers remain active but increasingly selective.
Mr McGlynn said this week felt like a continuation of what market watchers have been seeing rather than a shift.
“Buyers are still engaged but increasingly selective. You can see that clearly in the numbers,” he said.
“Auction volumes have jumped to 809 nationally, off the back of last weekend's Anzac Day pause, while clearance rates eased back to 56.3 per cent.
“Clearance rates have softened, but context matters. With more options available, hesitation naturally increases.
“At the same time, average active bidders have come back to 2.2 nationally, and while inspection levels have lifted slightly week-on-week, they remain well below last year.
“Buyers are still there, but they’re more considerate. They’re taking their time, doing more due diligence, and only stepping forward when a property truly stands out.”
Mr McGlynn said that when the right property did come to market, competition was still very real.
“Sydney’s 64 per cent clearance rate is a strong example of that. Bidder depth has come off, but not disappeared,” he said.
“It tells you confidence is still there, it’s just more targeted. Buyers aren’t chasing everything, they’re focusing on what they believe represents value, and acting with conviction when it aligns.
“For sellers, this is where alignment becomes critical. The properties that are priced and positioned correctly are still achieving strong outcomes, but the gap between expectation and reality is where campaigns are stalling.
“The first week of a campaign matters more, presentation matters more, and the ability to respond to feedback quickly is what separates success from missed opportunity.
“For buyers, this is one of the more balanced conditions we’ve seen in some time. There’s more choice, more ability to assess, and more opportunity to negotiate.
“But it’s important to recognise that while overall competition has eased, it hasn’t disappeared. It’s simply become more focused. And with price growth still holding relatively stable across most markets the fundamentals remain intact.”
He said this wasn’t a weaker market, it’s a more disciplined one.
“The data is pointing to a shift in behaviour, not a drop in underlying demand,” Mr McGlynn said.
“As we move further into the year, the key question will be how sellers respond.
“If they adjust, the market will continue to transact well. If not, we’ll start to see more friction come through in the numbers.”
The Ray White Group scheduled 496 properties to go under the hammer today, recording a preliminary clearance rate of 62.7 per cent.
The group saw an average of 2.8 registered bidders and 2.0 active bidders per auction nationally.
The top result for the day went to Ray White Caringbah agents Wendy Samrani and Joseph Alam who sold 46A Water Street, Caringbah South, under the hammer for $3.1 million.
The auction with the highest number of bidders went to Ray White Castle Hill agents Daniel Llamas and Joshua Gordon who recorded 18 registered bidders and eight active bidders at their 122 Cecil Avenue, Castle Hill auction. The property sold under the hammer for $2.595 million.
All eyes will be firmly on the RBA’s next cash rate decision this week plus the 2026-27 Federal Budget on May 12.
Ray White chief economist Nerida Conisbee said Australia’s housing market was losing momentum with April’s data showing an ease in monthly house price growth and a more pronounced divergence between markets.
“While annual growth remains strong across much of the country, conditions are clearly shifting as higher interest rates, global uncertainty and policy risks weigh on sentiment,” Ms Conisbee said.
“At the same time, the underlying drivers of housing remain largely unchanged.
“Supply remains constrained, construction costs are rising again, and population growth continues to support demand.
“The result is a market that is slowing in the short term, but still facing longer-term upward pressure on prices.”
April price data shows national dwelling values continuing to rise, but at a slower pace.
“Houses increased by 0.4 per cent over the month, while units rose 0.3 per cent, both well below the growth rates seen earlier in the cycle,” Ms Conisbee said.
“This moderation is not uniform. Sydney and Melbourne are now clearly in decline, with house prices falling 0.7 per cent and 0.8 per cent respectively over the month. These markets remain the most sensitive to higher borrowing costs and shifts in sentiment.
“In contrast, smaller capital cities continue to record strong growth. Perth remains the standout performer, with annual growth of 25.7 per cent for houses and 27.9 per cent for units.
“Brisbane and Adelaide also remain in double-digit territory, although the pace of growth has slowed compared to earlier months.”
Ms Conisbee said global uncertainty was playing a role in shifting market dynamics.
“Ongoing conflict in the Middle East continues to weigh on consumer sentiment, although confidence has lifted slightly in recent weeks,” she said.
“The Reserve Bank meets next week, with a further rate increase the most likely outcome. Higher rates will continue to reduce borrowing capacity and weigh on demand, particularly in Sydney and Melbourne which tend to be more sensitive to rates decisions.
“At the same time, the Federal Budget on 12 May is adding another layer of uncertainty. Potential changes to capital gains tax and negative gearing are being closely watched by investors. Even the possibility of policy change can influence behaviour. Investors may delay purchasing decisions, while some may look to exit the market, contributing to the recent increase in listings.
“While price growth is slowing, this does not mean affordability is improving. The key issue remains supply, particularly the rising cost of construction.”
