Brisbane\u2019s 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.<\/p>\n
REA data put the city\u2019s clearance rate at around 20 per cent, down from 63.9 per cent that week in 2025.<\/p>\n
Queensland\u2019s clearance rate only fared a little better, falling from 59 per cent last year to 24 per cent this year.<\/p>\n
Across 216 recorded homes on the market, only 51 sold<\/a> during, prior to or after auction. Meanwhile, 165 homes were either withdrawn or passed in.<\/p>\n 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.<\/p>\n \u201cNot only is there basically a guarantee there will be another interest rate hike by the end of this year, there\u2019s an expectation that there will be another one by the beginning of next year,\u201d he said.<\/p>\n Mr Redman said buyers were feeling the unaffordability of property<\/a> in Queensland, which scared them out of buying homes while the median home priced continued to fall.<\/p>\n \u201cMortgage repayments as a share of income is almost at 40 per cent,\u201d he said. \u201cThat\u2019s essentially unaffordable for most households.<\/p>\n \u201cThe [home] price to income ratio in Queensland is the highest it\u2019s ever been that we have on record \u2026 that showed really how unaffordable Queensland is.\u201d<\/p>\n 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.<\/p>\n \u201cWe\u2019ve had elevated interest rates for quite some time,\u201d he said. \u201cUnless sellers revise their expectations relative to the cost of borrowing \u2026 you\u2019re not going to see improvement in the short-term.\u201d<\/p>\n 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.<\/p>\n \u201cThe fundamentals driving successful transactions haven\u2019t changed,\u201d he said. \u201cBuyers need belief in value, sellers must be ready to meet the market, and agents must supply the energy to close the gap.\u201d<\/p>\n Owners of the deceased estate at 17 Stoneleigh St, Albion, went to market with a strong intent to sell, and became one of Queensland\u2019s best sales that week; gathering eight registered and five active bidders,despite market conditions.<\/p>\n The four-bedroom house had been left largely untouched since it was first bought, now run-down and spray-painted with graffiti.<\/p>\n 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.<\/p>\n A total of 71 bids were traded for the property, before it finally sold for $1.753m.<\/p>\n The new owner said he was moving back to Brisbane after living on the Gold Coast, and wasn\u2019t surprised to see the home was so popular at auction.<\/p>\n \u201cThere were a lot of bidders \u2026. I was expecting it to be heated,\u201d he said. <\/p>\n \u201cGood properties that tick a lot of boxes are hard to come by, so I\u2019m really excited \u2026 I\u2019m going to do a full renovation over the next few years.\u201d<\/p>\n Originally published as Interest rate fears hit Brisbane\u2019s home auction sales with 40 per cent yearly drop<\/a><\/p>\n