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The number of new listings in Melbourne has fallen 14 per cent in 12 months, realestate.com.au data shows.
Victoria’s traditionally busy spring auction market is poised for its softest start since Melbourne was in the midst of Covid lockdowns five years ago.
Experts have warned declining prices, lower clearance rates and rate hikes have also led to a decrease in broader Melbourne listings, giving buyers less choice under the hammer and for private sales.
According to realestate.com.au, just 620 homes across the state are slated to go under the hammer this week.
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That’s the lowest number since the same week in 2021, when 129 auctions were held.
At that time, Victoria’s capital was going through a 77-day pandemic lockdown mandated by then-Premier Daniel Andrews which ran until mid-October.
Realestate.com.au senior economist Angus Moore said at the moment, Victoria was seeing “pretty soft conditions” across its auction and housing markets.
“Clearance rates in Melbourne have been around 50 per cent, give or take in recent months,” Mr Moore said.
“The big driver there has been the fact that home prices are falling, they’re down 4 per cent, give or take from peak in Melbourne.”
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Realestate.com.au senior economist Angus Moore says buyers are still facing a challenging environment.
Melburnians walking in the city during the 2021 Covid pandemic. Picture: NCA NewsWire/Paul Jeffers.
Other factors behind the soft market include the Reserve Bank’s three rate hikes since February and the Australian government’s changes to capital gains tax and negative gearing announced in May’s budget, he added.
New listings in Melbourne dropped 14 per cent between July 2025 and July 2026.
And the city’s median house price declined to $971,000 in July, after falling in the previous four months, while last week’s clearance rate for Victoria was 50 per cent.
There’s 14 auctions scheduled in Craigieburn this week, 13 Reservoir, 10 each in Camberwell and Mt Waverley, and eight in Epping.
Mr Moore noted that softer conditions meant slightly less competition among buyers compared to 12 months ago, but it remained “a challenging environment” given affordability and rates.
He added that another rate increase before the year’s end would likely put more downward pressure on home prices.
“But with rates maybe at peak, or at least close to, and stability on the horizon, that should start to see conditions improving and prices starting to grow again next year,” the economist said.
Mr Moore said it would likely take a few months to see how Victorian government legislation, requiring home sellers to disclose their reserve price seven days ahead of an auction, impacted the market from its October 1 start date.
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