Brisbane’s clearance rates for the first week of spring dropped more than 40 per cent from the same time last year, thanks to fears of yet another interest rate hike.
REA data put the city’s clearance rate at around 20 per cent, down from 63.9 per cent that week in 2025.
Queensland’s clearance rate only fared a little better, falling from 59 per cent last year to 24 per cent this year.
Across 216 recorded homes on the market, only 51 sold during, prior to or after auction. Meanwhile, 165 homes were either withdrawn or passed in.
REA senior economist Luc Redman said the small turnout was likely thanks to interest rate fears, with the Reserve Bank of Australia predicted to rise rates at least once more in 2026.
“Not only is there basically a guarantee there will be another interest rate hike by the end of this year, there’s an expectation that there will be another one by the beginning of next year,” he said.
Mr Redman said buyers were feeling the unaffordability of property in Queensland, which scared them out of buying homes while the median home priced continued to fall.
“Mortgage repayments as a share of income is almost at 40 per cent,” he said. “That’s essentially unaffordable for most households.
“The [home] price to income ratio in Queensland is the highest it’s ever been that we have on record … that showed really how unaffordable Queensland is.”
While Mr Redman said some improvement may be seen later on in spring, elevated mortgage prices would likely impact the market until buyers were given certainty.
“We’ve had elevated interest rates for quite some time,” he said. “Unless sellers revise their expectations relative to the cost of borrowing … you’re not going to see improvement in the short-term.”
Ray White Queensland head of auctions Tom Gunness said vendors would need to be clear about their intention to sell their home if they wanted buyers at auctions.
“The fundamentals driving successful transactions haven’t changed,” he said. “Buyers need belief in value, sellers must be ready to meet the market, and agents must supply the energy to close the gap.”
Owners of the deceased estate at 17 Stoneleigh St, Albion, went to market with a strong intent to sell, and became one of Queensland’s best sales that week; gathering eight registered and five active bidders,despite market conditions.
The four-bedroom house had been left largely untouched since it was first bought, now run-down and spray-painted with graffiti.
Despite its condition, a furious auction took place over the weekend with Ray White Collective; each bidder eager for a 764 sqm elevated home near the city with an expectation to sell.
A total of 71 bids were traded for the property, before it finally sold for $1.753m.
The new owner said he was moving back to Brisbane after living on the Gold Coast, and wasn’t surprised to see the home was so popular at auction.
“There were a lot of bidders …. I was expecting it to be heated,” he said.
“Good properties that tick a lot of boxes are hard to come by, so I’m really excited … I’m going to do a full renovation over the next few years.”
Originally published as Interest rate fears hit Brisbane’s home auction sales with 40 per cent yearly drop
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