Selling in a falling market when buyer confidence is low is not impossible. It just requires a different approach than the one that worked eighteen months ago.
According to Domain, auction clearance rates across Sydney and Melbourne have dropped to 49% and to 54% respectively, levels matching or falling below those recorded during the 2022 downturn. More properties are passing in. More buyers are sitting on their hands. And more sellers are making decisions that cost them money because they are using a rising-market playbook in a falling market.
At PROPOHOLIC, we work on the consumer side of every transaction. What we are seeing right now is a market that rewards preparation, honest pricing, and genuine flexibility. Here is what that looks like in practice.
Know what the market is actually doing
The first mistake vendors make in a softer market is anchoring to what their neighbour got twelve months ago. That is not the market. Buyers, once gripped by fear of missing out, are now increasingly paralysed by fear of overpaying. That shift in psychology changes everything, including how you price, how you present, and how you negotiate.
Understanding the difference between the market you hoped for and the market you are in is the single most important thing a vendor can do.
Choose the right method of sale
Auction remains an effective tool in certain markets and at certain price points. But in softer conditions, the dynamics shift. Agents and vendors are increasingly accepting pre-auction offers amid concerns that competition may not materialise on auction day.
Private treaty and expression-of-interest campaigns are gaining traction because they give sellers more flexibility to test the market without the public spectacle of a passed-in result. The right method of sale depends on your property, your suburb, and the depth of buyer activity in your price range, not on what the agent is most comfortable running.
Price to attract, not to negotiate down from
Overpricing in a falling market does not create negotiating room. It creates silence. Buyers who feel a property is overpriced do not make low offers; they move on. Accurate pricing, realistic expectations, and effective negotiating are going to play an even greater role moving forward.
A well-priced property in the current market will attract more inspections, more genuine interest, and a better final result than one that starts high and chases the market down over several weeks.
Presentation matters more, not less
When there is less competition among buyers, every inspection counts. A poorly presented property in a strong market might still attract multiple offers. In a softer market, the same property may get one or two groups through and never generate the momentum needed for a good result.
Styling, photography, and first-impression presentation are not luxuries when the market is slow. They are the difference between a property that sells and one that lingers.
Get independent advice before you sign anything
When buyer confidence is low, the pressure on vendors to accept less-than-ideal terms can be significant. The agent you appoint has a commercial interest in the transaction completing. That is not a criticism. It is a structural reality.
An independent vendor advocate works only for you. We review the agent’s strategy, the marketing plan, the comparable sales, and the offers as they come in. In a falling market, that independent lens is particularly valuable because the cost of a poor decision is higher.
The market conditions do not have to define your result
Properties are still selling. Lower auction clearance rates do not necessarily mean homes are not selling. What they signal is that the process matters more than it did when demand was strong enough to cover strategic errors.
Vendors who go to market well-prepared, with a realistic price guide, a presentation that reflects the property’s value, and a method of sale suited to current conditions, are achieving good outcomes. The ones who struggle are those treating 2026 like 2021.
Thinking About Selling? Don’t worry, we are not agents…
If you have been weighing up your options, we would love to talk it through. Because we are not agents, we will give you strategic, honest guidance with no pressure, just a straight conversation about your property, your timeline, and what the current market actually means for you.
We work with sellers Australia wide.
