Key takeaways:
More sellers appear to be favouring private treaty as auction activity softens across Australia's largest property markets.
Buyers may have more scope to negotiate on price, settlement terms and contract conditions in some markets.
Private treaty can provide more time to organise finance, complete due diligence and compare properties before making an offer.
Preparation remains important, with pre-approval helping buyers understand their borrowing power and move confidently when the right property becomes available.
Selling a home by auction has long been the preferred strategy in Australia's largest property markets, particularly when buyer competition is strong.
But that appears to be changing.
Cotality's latest Monthly Housing Chart Pack shows the share of new listings heading to auction has fallen sharply since late last year, dropping from almost 45% in November to just over 30% in June as more vendors appear to be favouring private treaty sales.
The shift comes as affordability pressures, higher interest rates and softer buyer demand continue to reshape Australia’s housing market.
For buyers, that could mean more than simply seeing fewer auctions. It may also create additional opportunities to negotiate, organise finance and complete due diligence before committing to a purchase.
Why some sellers are moving away from auctions
The shift is also reflected in auction activity across Australia's largest markets.
Cotality’s latest Monthly Housing Chart Pack shows auctions accounted for almost 45% of new listings in November 2025, but that share had fallen to just over 30% by June 2026 as more vendors appeared to favour private treaty sales.
More recent weekly results continue to point to softer conditions, with Sydney recording a 42.4% clearance rate and Melbourne 50.6% in the week ending 19 July. Taken together, the monthly and weekly data suggest sellers are continuing to adapt their sales strategies rather than viewing the change as purely temporary.
Gerard Burg, Head of Research at Cotality, said affordability and serviceability pressures, higher interest rates, weaker consumer confidence and softer investor demand had weighed on buyer activity.
As buyer demand has eased, seller behaviour has begun to change too.
“We've now seen nine weeks where auction numbers have fallen year-on-year,” Burg said.
“New listings for sale are now trending lower, with a smaller share of these new listings heading for auction, with vendors increasingly favouring private treaties in the current environment.”
Softer clearance rates support that shift. The combined capital city four-week average fell from its peak of 66% in early February to the low-40% range by June, with Sydney and Melbourne continuing to record weaker results, according to Cotality’s chart pack.
Higher vendor discounting highlighted in Cotality’s data may also indicate sellers are becoming more flexible on price. Across the combined capital cities, the median vendor discount increased from 3.0% in the March quarter to 3.6% in the June quarter, suggesting a growing gap between what sellers initially ask and what buyers are prepared to pay.
Burg said the adjustment reflects sellers becoming more realistic about buyer demand and choosing sales methods that may attract a broader pool of purchasers, with more vendors willing to consider private treaty sales or negotiate directly with buyers rather than relying on competitive auction bidding.
In a market with fewer active buyers, private treaty may allow sellers to negotiate with interested buyers without relying on competitive auction bidding to achieve a sale.
What the shift could mean for buyers
For buyers, the move towards private treaty may provide more flexibility than purchasing at auction.
Scott Bolton of Aussie Manuka in Canberra said buyers are becoming more informed and cautious, with many preferring an environment that allows them to consider their options before making a decision.
Bolton said the shift has been particularly noticeable in Canberra, where auctions have traditionally been a common way to sell homes.
“Private treaty generally provides buyers with a greater perceived ability to negotiate and make offers,” he said.
“It creates a less stressful purchasing environment and gives buyers more time to consider alternative properties.”
You might also be interested in: Buying at auction vs private treaty
Bolton said buyers may have greater scope to negotiate on price, settlement terms and contract conditions than they did during the peak of the market.
Burg agrees.
“When clearance rates fall to around 60%, buyers who remain in the market are benefiting from a greater choice of properties with less urgency to make an offer,” he said.
“This puts them in a stronger position to negotiate with vendors.”
Nationally, homes are now taking a median 32 days to sell, while the median time on market across the combined capital cities has increased from 28 days to 30 days over the past year. Cotality says this reflects softer selling conditions and increasing supply.
For buyers, that may mean more time to inspect homes, organise finance and negotiate before making an offer.
More time can also mean better preparation
Private treaty may also give buyers more time to organise their finances before making an offer.
Bolton said the current environment allows buyers to secure a pre-approval, arrange building and pest inspections, research the surrounding suburb and negotiate with greater confidence.
“It also allows buyers to learn and gain experience without the pressure and urgency often associated with auctions,” he said.
Having pre-approval in place may also help buyers understand their borrowing capacity, move quickly if the right property becomes available and negotiate with greater confidence.
An Aussie Broker can help you understand your borrowing power, compare loan options and determine what may be achievable before you begin negotiating.
Softer conditions don't remove the need to act decisively
While buyers may have more time than they did during the peak of the market, some are choosing to delay their purchase in anticipation of further price falls.
Bolton added some buyers are taking a "wait and see" approach.
Dean Hammond of Aussie Ashfield said he is also seeing the market become more favourable for owner-occupiers and first-home buyers as investor activity eases.
“We're seeing the market move back towards private treaty as buyer conditions become more balanced,” he said.
Market conditions also vary significantly between suburbs and property types. Highly desirable or scarce properties may still attract multiple buyers and sell through auction, while others may be better suited to private treaty.
While conditions appear to be becoming more balanced in some markets, every suburb and property type is different. Rather than trying to predict exactly where prices may move next, buyers may benefit from understanding their borrowing capacity, researching their local market and having their finance organised before making an offer.