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Spring Shake-Up: Sellers Take the Lead as Buyers Face Fierce Market Conditions

As the 2025 spring selling season approaches, momentum is swinging firmly in favour of property sellers. Rising auction clearance rates, successive interest rate cuts, and a dramatic lift in buyer activity are creating a competitive environment — but also sharpening affordability challenges for buyers.

📈 Auction Clearance Rates Hit Turning Point

In July, Sydney’s auction clearance rate rose to 68.2%, its highest since mid-2023. Melbourne followed closely at 69.3%. Experts say once clearance rates hit 70%, rapid price growth often follows — and we’re on the cusp.

Domain economist Dr Nicola Powell says the steady rise in clearance rates since March shows clear momentum. This trend suggests spring could tip the scales even further in sellers’ favour.

💸 Rate Cuts Fuel the Market — and Buyer Competition

The Reserve Bank’s third interest rate cut this year dropped the cash rate to 3.60%. Banks passed it on in full, increasing borrowing power by up to $20,000 for buyers with a $700,000 loan.

Pre-approvals surged across Australia, with NSW up 49% year-on-year. At the same time, listings remain at a three-year low, intensifying competition across the board.

🧮 Affordability Still an Uphill Battle

Despite increased borrowing capacity, deposits remain a barrier. Finder research shows average Aussies can now afford homes in places like Glenmore Park, Marsden Park, and Oran Park — but prices are likely to keep climbing, making it tough for first-home buyers.

Low borrowing costs often trigger more market activity, which could drive up property prices and cancel out repayment savings — especially in undersupplied segments.

📊 What to Expect This Spring

Spring will be the real test. If listings remain tight and buyer momentum continues, sellers with well-prepared homes stand to gain significantly.

Rodney McLoughlin notes that while market sentiment is improving, affordability constraints and cautious rate movements will prevent runaway growth. Still, savvy sellers who list early may benefit from reduced competition and motivated buyers.

Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 15 August 2025.


Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.

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