A wave of property sellers has been hit by a buyers’ strike

May 25, 2026 — 3:38pm

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Another week of anemic auction clearance rates across Sydney and Melbourne remains a harbinger for house prices to decline – a movement that will be negatively turbocharged by the tax-unfriendly changes for property investors outlined in the federal budget.

There is little dispute about whether the property prices will cool this year – however there is a range of views on whether the change will be arctic or just chilly.

A wave of sellers has been hit by a buyers’ strike – a toxic recipe for house prices. According to Domain’s calculations, almost half the properties under the auction hammer last week went unsold.

At the more extreme end some investment banks like Morgan Stanley are predicting the property prices will experience the largest correction in 40 years and fall by up to 10 per cent.

The major banks are acknowledging the additional pressure on investors will be a negative for home prices but the two largest,........

© The Age