Home Sellers Shift to Private Sales Amid Market Dip

The rise in private treaty home listings reflects shifting seller strategies as Australia’s housing market faces softer conditions.

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Pick & Scroll News
February 05, 2025

The rise in private treaty home listings reflects shifting seller strategies as Australia’s housing market faces softer conditions. Growing concerns over weaker auction outcomes and high borrowing costs have led homeowners, especially in Sydney and Melbourne, to opt for private sales instead.

The housing market has witnessed a noticeable decline in auction activity. Data from SQM Research reveals a sharp 7% year-on-year drop in scheduled auctions for the first half of February 2024. Meanwhile, new property listings surged by 18.1% compared to January 2024 and reflecting a flood of homes entering the market. This comes amid mounting pressure from high mortgage rates and reduced buyer demand.


Private treaty sales, which allow homeowners more control in weaker markets, are becoming the preferred selling method. With auction clearance rates falling to 52.6% in Sydney (down from 65.4% last year) and Melbourne at 58.5% (down from 65.3%), sellers are pivoting toward strategies that create less risk. Market analysts attribute this trend to low buyer confidence, as borrowing capacities remain constrained due to higher interest rates.


CoreLogic reports a decline in the share of auction listings, which now represent 33% of total sales compared to the pandemic peak of 37.4% in April 2022. Home values have also taken a hit, with Sydney down 1.4% and Melbourne falling 2% over the past three months alone while Brisbane and Canberra have been seeing rising inventory.


Despite these tough conditions, January 2024 saw a wave of new listings in many capital cities. Sydney experienced a 61% monthly increase, with annual gains of 24.9%, while Canberra and Melbourne rose by 41.8% and 27.2% year-on-year respectively. However, softer market confidence has led to reductions in asking prices, with Sydney, Melbourne and Brisbane all seeing slight month-on-month declines.


As sellers adjust their strategies to align with market realities, private treaty sales seem poised to play a larger role in the evolving real estate market. However, with borrowing pressures and affordability concerns weighing heavily on buyers, the road ahead for home sellers remains uncertain.