Australia's Property Market Enters Recession, Buyers' Agent Warns

Australia's property market is in a recession, according to Glenn Price, founder of Price Buyers Agents. Despite predictions that the Reserve Bank of Australia (RBA) will hold interest rates steady on Tuesday, Price believes it won't be enough to revive the market. He points to dismal auction clearance rates and falling prices as evidence.

Price claims that Brisbane is in a 'property recession', with more than 60% of auctions failing to sell over the past few months. At recent open houses he attended, Price said he was often the only bidder, while real estate agents stood by watching 'tumbleweeds' blow through empty rooms.

The Cotality figures show that national auction clearance rates have been below 50% for weeks, with Brisbane and the Gold Coast's rate below 40% since June. Price notes that a decent chunk of his clients are first-home buyers who have been priced out of the market due to high interest rates and cost of living expenses.

Westpac predicts investor demand for mortgages will halve in the next two years, while home prices across major cities and the Gold Coast have fallen 2.7% from the previous quarter. Sydney is down 2.6%, Melbourne is down 3.3%, but Brisbane and the Gold Coast are still up 13% compared to last year.