The Property Market Is Slowing. Here’s Why Finance Preparation Matters More Than Ever
Something significant happened in Australia’s property market last weekend.
Auction clearance rates across the combined capital cities fell to 47%, the lowest result since April 2020, right at the start of COVID. In Sydney alone, 166 auctions were withdrawn before they even went to market, and only 225 out of 645 listed auctions actually cleared. That’s a big number. And it tells a clear story.
Buyer confidence is weakening. And it’s not hard to see why.
What’s Actually Going On
Three interest rate rises from the RBA this year have done exactly what higher rates are designed to do, they’ve reduced how much people can borrow and pushed up monthly repayments. If you borrowed 18 months ago at a lower rate, your repayments have already gone up. If you’re looking to buy right now, your borrowing capacity looks different to what it did even six months ago.
This Isn’t a Reason to Panic, It’s a Reason to Prepare
A falling auction clearance rate doesn’t mean the market is broken. It means competition at auctions has eased, buyers may have more room to negotiate, and buyers who have their finance sorted before they go looking have a genuine edge.
That’s actually a shift in your favour, if you’re ready.
What This Means If You’re Buying
If you’re in the market to buy, lower auction competition is genuinely good news. Fewer bidders, more time to think, and sellers who are more open to conversation. But none of that matters if your finance isn’t ready.
Getting a strong home loan pre-approval before making offers can give you a clearer view of your borrowing range and help you act with more confidence.
In a market where things are shifting, being finance-ready is your biggest advantage.
What This Means If You’re an Investor
If you’re holding investment properties or thinking about buying one, the Budget changes deserve a proper look. The proposed rules around negative gearing and capital gains tax may affect future investment decisions, cash flow planning and expected returns, depending on your property type and timing, and what looked profitable 12 months ago may need to be reassessed.
That doesn’t mean property investment stops making sense. But it does mean the strategy needs to be tighter. Understanding your rental yield, your repayments, and how the new tax settings apply to your situation is something worth sorting out before the end of financial year pressure kicks in.
Ready to understand your position in this market?
At OM Financials, we make the loan process simple and guide you every step of the way. Whether you’re buying your first home, reassessing an investment, or wondering if it’s time to refinance, we’re here to help you figure out your next move.
Book your free consultation or call us anytime on 0478 876 967. Follow us on Instagram for regular market updates.