The Promising Auction Outlook for 2026
It seemed like only yesterday we were all setting our out of office and ditching the suits (or heels) for festive attire, with a carefree smile and what felt like endless holiday possibilities. But believe it or not, we are mid-way through January and the slow days filled with extra bevvies, uncounted calories and mid-afternoon naps are just a mere memory, as the industry appears to have hit the ground running in 2026.
Early indicators show that the auction market is not slowing down, instead it’s evolving and savvy agents are embracing the opportunity to the lead the narrative in the new year. Data from industry sources shows that auction activity in Australia’s biggest markets has kicked off with strength. From the outset in January we have seen listings surge by almost 25% year-on-year at major onsite auction events, signalling that both buyers and sellers are increasingly comfortable with the dynamism and transparency auctions bring.
But let’s unpack what that really means for you and your listings this year - beyond headlines.
🔍 1. Demand Is Coming from Three Strong Buyer Cohorts
First-home buyers are back in force. With continued incentives, including expanded government schemes, first home buyers are entering the auction ring earlier and more competitively than in recent years. This isn’t just chatter; it’s reflected in early 2026 auction clearance trends as reported on domain.com.au.
Investors are also showing renewed interest, driven by stronger rental returns and expectations of price growth throughout the year, another bullish sign for auction volumes.
What this means for you:
Lower-priced and entry level stock is trading with velocity
Auctions provide the competitive pressure that these buyer cohorts thrive in
Agents who position auctions as the go-to strategy for this segment are likely to win more listings
📊 2. Clearance Rates Still Matter - And They’re Healthy
Reports point to clearance rates comfortably sitting in the high-60s to 70s in Sydney and Melbourne recently (with some offices seeing even higher mid-70s results) and that’s coming off tight stock levels.
Healthy clearance rates reflect confidence, and confidence fuels participation.
Here’s the education point many agents overlook:
High clearance rates don’t just reflect buyer strength, they’re a leading indicator of pricing momentum. When clearance rates stay elevated, properties sell faster and often at or above expectations.
In a year where interest rate narratives may still fluctuate, that kind of certainty is a powerful offer to vendors.
📌 3. Stock Levels Are Tight - But Listings Are Starting Earlier
One of the classic auction advantages in markets like this is timing.
Instead of waiting for private treaty campaigns that stretch on and stagnate, auctions:
✔ Play to the current high participation sentiment
✔ Give you a finite campaign window that drives urgency
✔ Deliver certainty of outcome, which vendors increasingly value
At Holmes and Co, we are already seeing early-season marquee auction days are in preparation across thriving real estate brands, significantly more than we experienced in 2025.
If you’re still wondering whether vendors get it, these figures answer that.
🧠 4. Interest Rates Still Impact Confidence - But They’re Also Creating Opportunity
Yes, there is little doubt that interest rate narratives do have volatility, and that can temper sentiment.
But, and this is critical - stability in lending policy tends to reinforce buyer confidence more than a cycle of rate cuts alone. What that means for auctions: when buyers feel confident that lending won’t radically shift mid-campaign, they behave more assertively under the hammer.
And that’s your educational moment with clients: Position auctions as the method that converts confidence into real results - faster and more transparently than private treaty.
🏆 5. Practical Takeaways for Agents This Year
Here’s how you can turn these predictions into action:
✅ Educate vendors early: Show them that a competitive auction environment in 2026 is not speculation - it’s observable market behaviour.
✅ Position first-home and investor demand as a strength, especially on priced-to-auction opportunities.
✅ Use auction results as proof points in listings, clearance rates and buyer turnout tell a story vendors care about.
✅ Advocate timing as strategy - early season actions can set pricing benchmarks for the year.
📌 In Summary
2026 isn’t shaping up to be just another year, it’s showing signs of heightened buyer competition, strong participation across segments, and stable auction comfort from the market. For agents ready to leverage this, auctions aren’t just a method - they’re a strategic advantage in a year where clarity and competition matter more than ever.
Holmes & Co Auctions has a front-row view of this, and we’d love to help you turn these trends into strong results for you and your sellers.