National Values Flatline as Headwinds Gather
Australia’s housing market moved into a quieter phase in May, with national dwelling values unchanged for the month. The flat result masks very different conditions across the country.
Sold the Wrong Way? It Costs You
The method you choose to sell your property can be just as important as the price you set. Get it wrong and you risk leaving money on the table – or waiting far longer than you need to.
Auction or Private Treaty?
For homeowners across Australia and New Zealand, choosing how to sell a property remains one of the most important decisions in 2026.
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National values flatline as headwinds gather
Australia’s housing market moved into a quieter phase in May, with national dwelling values unchanged for the month. The flat result masks very different conditions across the country. Some markets are still rising, but the overall pace has slowed as affordability, borrowing limits and household budget pressure weigh more heavily on demand.
National dwelling values were still 8.8 per cent higher over the year, with a median value of $941,864. However, the combined capitals slipped 0.1 per cent in May, while combined regional markets rose 0.6 per cent. Over the quarter, capital city values were flat, compared with a 2.4 per cent rise across the regions.
Sydney and Melbourne are now leading the softer side of the cycle. Sydney values fell 0.9 per cent in May and Melbourne values fell 0.8 per cent. Both are now below recent peaks, with Sydney down 2.1 per cent from November and Melbourne down 3.2 per cent from its March 2022 high. Canberra also eased, down 0.2 per cent for the month.
Perth, Darwin, Brisbane, Adelaide and Hobart slowing
Other capitals remain positive, although momentum is easing. Perth and Darwin recorded the strongest monthly gains, both up 1.5 per cent. Brisbane and Hobart rose 0.9 per cent, while Adelaide increased 0.5 per cent. Perth remains the standout over the year, up 25.8 per cent, followed by Darwin at 20.3 per cent and Brisbane at 19.1 per cent.
Regional markets continue to show more resilience, but they are not immune to the slowdown. Regional WA led the monthly gains at 1.9 per cent, while regional NSW recorded the smallest rise at 0.2 per cent. Across all regional markets, the May increase was the slowest in a year.
The softer tone is also showing in activity. Estimated national sales over the past three months were 2.2 per cent lower than a year earlier and 4.1 per cent below the five-year average. Sydney and Melbourne recorded the sharpest falls in sales, while listings have risen above average in those cities, giving buyers more choice and stronger negotiating power.
Pricing sensitivity up For homeowners considering selling, the message is to price carefully and prepare well. In slower markets, buyers are less likely to chase properties that sit above market expectations. Presentation, timing and local advice matter
For owners holding or renovating, the data supports a measured approach. Growth has not disappeared, but it is becoming more uneven. Improvements should be guided by long-term liveability and likely buyer appeal, not short-term price expectations.
For first home buyers, affordability remains difficult, but softer conditions in some markets may provide more breathing room. Higher listings and slower sales can create more time to compare options, negotiate and avoid rushed decisions. The trade-off is that borrowing capacity remains constrained while interest rates, inflation and living costs continue to shape what buyers can safely afford.
‘The Great Pause’
Agents are describing the post Budget environment as ‘The Great Pause’. Two weeks on from the Budget’s tax shake-up. First home buyers, investors and vendors are taking stock and waiting for clarity. That is a considered response to a significant policy shift, and history tells us that markets which pause with purpose tend to move with conviction when the picture clears.
Monthly Change in Capital City Values
………………………………………MONTHLY……………….ANNUALLY
Sydney -0.9 % +2.3 %
Melbourne -0.8 % +0.5 %
Brisbane +0.9 % +19.1 %
Adelaide +0.5 % +12.3 %
Perth +1.5 % +25.8 %
Hobart +0.9 % +9.3 %
Darwin +1.5 % +20.3 %
Canberra -0.2 % +4.3 %
National 0.0 % +8.8 %
Sold the Wrong Way? It Costs You
The method you choose to sell your property can be just as important as the price you set. Get it wrong and you risk leaving money on the table – or waiting far longer than you need to.
Auction suits homes with broad appeal or limited comparable sales – it creates urgency and lets the market set the price. Private treaty works well when your buyer pool is narrower or you need flexibility on timing. Tender or deadline sale sits somewhere between the two, inviting serious buyers to commit without public pressure.
Three things to consider before deciding:
- What is the local market doing right now – rising, steady or cooling
- Whether your property has wide appeal or suits a specific buyer
- How much time and certainty matter to you as a seller
The right method isn’t universal – it depends on your property, your circumstances and what’s actually working in your neighbourhood at the moment.
What matters most to you when selling – speed, price or certainty? The answer may vary at different stages in life. The most important thing is talking to your local real estate agent for advice.
Auction or Private Treaty?
For homeowners across Australia and New Zealand, choosing how to sell a property remains one of the most important decisions in 2026. The two most common methods – auction and private treaty – continue to perform differently depending on local market conditions, buyer confidence and property type.
Recent market data shows auction activity remains strongest in major Australian cities such as Sydney, Melbourne and Adelaide, while private treaty continues to dominate many regional areas and much of New Zealand.
In Australia, auction clearance rates during May 2026 have generally tracked around the mid to high 50 per cent range nationally, according to Domain and other industry reporting. Results continue to vary between cities and suburbs, with some areas seeing stronger competition than others.
In New Zealand, auctions remain common in Auckland and some higher-demand centres, although private treaty and deadline sale campaigns are still widely used across the country. REINZ market commentary through early 2026 has pointed to more balanced conditions in many regions, with buyers taking longer to make decisions and negotiating more carefully.
That shift matters because the best sales method often depends less on trends and more on local buyer behaviour at the time a property enters the market.
Auctions may suit:
- Areas with strong buyer competition
- Unique or tightly held homes
- Sellers seeking a clear campaign timeline
- Markets where emotional buyer engagement is high
Private treaty may suit:
- More price-sensitive or cautious markets
- Homes where buyers expect pricing guidance
- Sellers wanting flexibility on timing or conditions
- Locations with lower auction participation
Across both countries, one clear trend in 2026 is that buyers are becoming more selective. Higher living costs, lending scrutiny and affordability pressures continue to influence confidence in many markets.
As a result, some auction campaigns are being adjusted mid-stream. Industry reporting in Australia has shown more properties selling before auction, passing in, or moving into post-auction negotiation. Similar patterns are appearing in parts of New Zealand, where agents report buyers are taking longer to commit and often negotiating more carefully on price and terms.
For homeowners, that reinforces the need for a strategy based on current local evidence rather than assumptions about which method is best for you.
It is also important to understand that auction clearance rates do not always tell the full story. Some homes sell prior to auction, some immediately after, and others transition quietly into private negotiation. In both Australia and New Zealand, private treaty still represents a significant share of residential sales activity.
Presentation, pricing and marketing quality also remain critical regardless of the chosen method. Well-presented homes priced in line with current buyer expectations are generally attracting stronger engagement than properties positioned too aggressively.
The chosen sales method can affect buyer competition, negotiation flexibility, marketing costs and time on market. In stronger conditions, auctions may help generate urgency and transparency. In more balanced markets, private treaty can allow for more measured negotiation and broader buyer participation.
The right approach is usually the one that reflects local market conditions, the property itself and the seller’s priorities.
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Reece’s knowledge of the market and advice was exceptional, he was always very responsive and nothing was ever to much trouble. Reece was determined to get the best possible outcome and delivered! – Vendor
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Isabella was great to work with. Very knowledgeable about the area and she was always very responsive to our questions. Her advice was spot on. She really helped us make huge decisions and feel confident we were doing the right thing. I’m very happy with the result in an uncertain market. Thanks Isabella. Very much appreciated. – Vendor
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Katie and the team were incredible. Organising inspections and discussions with our landlord and getting me into the property with minimal fuss. Great communication, great response times, always listening. Thanks Katie. – Tenant
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We recently bought our first home with Nanette, and we honestly couldn’t have asked for a better agent. She was knowledgeable, supportive, and genuinely cared about helping us find the right place. Her communication was amazing, and she made the whole process feel easy and positive. We absolutely think the world of her and would recommend her to anyone. – Buyer
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Working with FN Bowral was a smooth and well-managed process. Communication was consistent and practical throughout. We were kept updated at each stage, with clear explanations around progress and next steps. Their transparency and organised approach ensured that key issues were identified early and dealt with promptly, helping the transaction stay on track. Our experience with FN Bowral was positive, and they managed the office sale competently and with clear communication. – Vendor
