As the housing market slows, there are three things not to do

May 27, 2026 — 3:00am

You have reached your maximum number of saved items.

Remove items from your saved list to add more.

When people face a threat – real or perceived – the common responses are “fight”, “flight” and “freeze”.

When it comes to the latest property tax changes, all three have been on display: a flurry of people kicking up a fuss and warning the housing market will collapse, investors pulling back from purchasing homes and some people pausing any decisions until they feel better informed.

Real estate agents and property investors – the people who have the most to lose from a slowdown in house prices – are, unsurprisingly, out in force against the changes. But there are also some households understandably worried about what a downturn might mean.

The share of homes sold at auctions across Australia last weekend was about 53 per cent, down about 12 per cent compared to the same time last year. That’s a noticeable drop, tipping the housing market towards what’s called a “buyer’s market” where the clearance rate is below 60 per cent and buyers hold a bit more bargaining power.

That’s not necessarily a bad thing, though. The Australian housing market has, for a long time, been a “seller’s market” with prices climbing rapidly.

Many of the people who have benefited from house prices climbing are now alarmed at the prospect of house prices falling. But imagine what it must have felt like to be on the other side as an aspiring home owner, watching house prices grow at more than double the rate of incomes for several decades.

But wait, some........

© WA Today