Confidence has picked up. More buyers are stepping back in, open home numbers are up, and agents are talking more about competition. But this isn’t 2021. Affordability is still the ceiling in most parts of the country. So for now, instead of a 'boom' we're seeing steady, solid results.
Both of the Reserve Bank of Australia's (RBA) rate cuts in 2025 have led to immediate and notable increases in Sydney's auction clearance rates, reflecting heightened buyer activity.
February Rate Cut: Following the RBA's decision to lower the cash rate in February, Sydney's preliminary auction clearance rate rose to 74.4% in the week ending February 23, up from 65.3% the previous week. This surge indicates a positive market response to improved borrowing conditions.
May Rate Cut: After the May rate cut, Sydney experienced a significant increase in auction activity. The preliminary clearance rate also climbed to 72.2%, marking the first time in ten weeks it surpassed the 70% threshold.
But before we declare a comeback, we know that one or two rate moves doesn’t erase the real constraints buyers are facing. It’s easier to bid when money’s a bit cheaper, but that doesn’t mean buyers are suddenly flush with cash. Right now, we’re seeing a reaction, not a rebound.
If you’re in the market, this is a good time to re-engage. You’re not competing in a frenzy, but you are seeing signs of life. The buyers who’ve done the prep work are getting in early—before things get too crowded.
Sellers are also tuning in. They’re reading the shift in the market and adjusting expectations—some dropping the ‘just testing the market’ act and starting to meet buyers halfway.
This isn’t about calling a boom. It’s about noticing the shift—buyers are showing up, sellers are adjusting, and there’s a bit more pace in the market than a month ago.
It’s a boring take, I know—but buyers need to focus on their own goals and situation. Be aware of what the market’s doing, but don’t let the noise make the decisions for you.