Sydney Auction Season 2026: What the Clearance Rate Surge Means for Buyers

Sydney's 2026 auction season has kicked off with a bang. Despite the RBA hiking rates to 3.85% in February, clearance rates have surged to above 71% - the highest since mid-October 2025. Brokers are reporting their busiest start to the year ever, with buyers and sellers both eager to transact. If you're planning to buy at auction this year, here's what the numbers mean and how to give yourself the best chance.

The Numbers: How Strong Is the Market?

What the Clearance Rate Tells You

The auction clearance rate measures the proportion of properties that sell at auction on a given weekend. It's one of the best real-time indicators of market conditions:

It's worth noting that clearance rate data only covers properties marketed with an auction campaign. It doesn't include private treaty sales, which make up a significant portion of the market.

Why Is the Market So Strong Despite Rate Hikes?

Several factors are driving the surprisingly strong start to 2026:

• Pent-up demand: The market was starved of stock over the summer holidays. Buyers are charging back with renewed energy.
• Limited supply: Sydney listings are down 2.9% year-on-year. Fewer properties means more competition for each one.
• Sellers motivated to act: With the prospect of another rate hike in May, many sellers are keen to transact now rather than risk softer conditions later.
• Pre-approved buyers ready to go: Many buyers secured pre-approval before the February rate hike and are using it before it expires.
• February seasonality: The auction clearance rate in February is typically the highest of the year as the market reopens after summer.

7 Tips for Buying at Auction in 2026

1. Get Pre-Approval Sorted Before You Start

Auction sales are unconditional - there's no cooling-off period and no finance clause. You must have your finance locked in before bidding. Get pre-approval from your broker, confirm the exact amount you can borrow, and get a written confirmation from your lender.

With a potential May rate hike, be aware that some pre-approvals may expire before the property settles. Talk to your broker about locking in rates or extending your pre-approval period.

2. Set a Hard Limit and Don't Go Over It

Auction fever is real. In the heat of the moment, it's easy to bid $10,000-$50,000 above your budget. Before the auction, decide your absolute maximum and write it down. Have someone with you to keep you accountable.

Use our mortgage calculator to understand exactly what your maximum bid translates to in monthly repayments.

3. Research Comparable Sales

Don't rely on the agent's price guide alone. Research recent sales of similar properties in the same area over the past 3-6 months. Look at:

• Sold prices on realestate.com.au and Domain
• The property's last sale price (if applicable)
• Median prices for the suburb and property type

4. Attend Auctions Before You Bid

If you've never bought at auction, attend 3-5 auctions as a spectator first. Observe how the bidding works, how the auctioneer operates, and how other buyers behave. This removes the unknown factor when it's your turn to bid.

5. Get a Building and Pest Inspection Done Early

Since auction contracts are unconditional, you can't make the sale subject to inspection. Pay for a building and pest inspection before auction day. This costs $400-$800 but could save you from buying a property with $50,000+ in hidden defects.

6. Have Your Solicitor Review the Contract

Get the contract of sale reviewed by a conveyancer or solicitor before auction day. They'll flag any unusual conditions, easements, or issues that could affect the property's value or your ability to use it as planned.

7. Consider Bidding Strategies

Different strategies work in different situations:

• Strong opening bid: Jump in early with a confident bid near the guide range. This can scare off weaker competitors and signal you're serious.
• Late entry: Wait until bidding slows, then enter with a sharp bid. This gives you information about the competition before committing.
• Odd numbers: Bid $1,003,000 instead of $1,000,000. Odd numbers can break the rhythm of round-number bidding and psychologically feel like "more" to competitors.
• Slow the pace: Take your time between bids. There's no requirement to bid immediately. Pausing makes other bidders nervous.

What to Expect for the Rest of the Season

Auction volumes are expected to build through late February and March, with the peak typically hitting in late March and April. Key factors to watch:

• Late April CPI data: If inflation remains high, expect buyer urgency to increase ahead of a potential May rate hike
• Stock levels: If listings remain low, competition will stay fierce and clearance rates will hold up
• Pre-approval expiry: Many pre-approvals secured before February will expire in April-May, potentially reducing the active buyer pool