Lower borrowing costs and strong clearance rates set the stage for a busy spring selling season
The Australian housing market is entering spring with renewed energy, driven by a combination of lower interest rates, robust auction clearance rates, and shifting supply dynamics across the capital cities, recent data analysis from property listings platform Domain has revealed.
Over the past decade, spring has consistently marked the busiest period for residential property activity. Data shows that the number of homes for sale typically rises by 5.9% from winter to spring, while national sales volumes increase by an average of 8.4%.
The Domain report also showed that auction activity has intensified, with volumes 31.1% higher than in winter. Despite the surge in listings and auctions, clearance rates tend to remain strong, particularly in Sydney and Melbourne, which together account for 70% of national auction activity.
The latest figures indicate that houses sold in spring achieve a 2.6% price premium compared to winter. Between January and July 2025, the combined capital median house price increased by 9.2%, the third-highest growth rate for this period in the past ten years. This upward trend is particularly pronounced in Brisbane, Canberra, and Hobart, where spring price gains have averaged 3%.
Auction clearance rates have also reached notable highs. In July 2025, Sydney and Melbourne reported clearance rates of 69.1% and 68% respectively, outpacing their results from spring 2024. Other capitals, including Adelaide and Brisbane, are performing near the upper end of their historical ranges, although Perth has recorded a lower rate of 16.4% this winter.
Supply trends have varied by city. Sydney has maintained strong inventory growth, with a 14.6% increase in properties for sale in July. In contrast, Melbourne’s stock has begun to decline after peaking at record levels late last year, while other cities such as Brisbane, Perth, and Adelaide have seen supply tighten after initial gains earlier in 2025.
This year, the market enters spring following three cash rate cuts, which have bolstered buyer confidence and increased borrowing capacity. “Spring has always been the market’s defining season, but this year it arrives with a powerful new catalyst,” said Nicola Powell (pictured right), chief of research and economics at Domain.
“We’re already seeing strong clearance rates and building price momentum across most capital cities. The influx of listings that we typically see in spring, combined with reignited demand from lower borrowing costs and accelerated support for first home buyers, could make this one of the strongest seasonal rebounds we've seen in a long time.”
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