Sydney property buyers have more time to compare homes and negotiate, but uncertainty over interest rates is keeping decisions on hold. The Sydney property market is offering greater choice while higher borrowing costs continue to limit what many households can afford.
For buyers and sellers, the question is how to act on today’s conditions without relying on a rate prediction or trying to pick the exact market bottom.
Inflation in focus
The next inflation release on 28 October is an important signpost ahead of the Reserve Bank’s 3 November decision. The cash rate is currently 4.60%, following four increases this year. Another rise would add pressure to repayments and borrowing capacity, but the decision remains uncertain.
In the article supplied this week, Compare the Market’s David Koch identifies 3.6% trimmed mean inflation as a figure to watch. That is his assessment of the outlook, rather than an official RBA threshold that automatically triggers a rate increase. The Bank must also weigh employment, demand and the wider inflation picture.
For households, the practical response is to review the numbers before making a commitment. Check your current mortgage rate, ask your lender what it can offer and speak with your broker about borrowing capacity and repayment buffers.
Homes taking longer to sell
Cotality’s October Housing Chart Pack shows Sydney dwelling values fell 4.9% over the September quarter, leaving them 8.6% below their February peak. These are broad dwelling-value measures, rather than the change in every suburb or individual house.
The wider market also shows why buyers are feeling less urgency. An estimated 39,747 homes sold nationally in September, down 20.9% from September last year. The national median selling period increased from 26 to 41 days.
New listings nationally were 7.9% lower than a year earlier, yet total advertised stock was 19.1% higher. That combination suggests the growing pool of available homes is being driven by slower sales, rather than simply a flood of fresh listings. These national figures provide context; they should not be read as Sydney-specific results.
Room to negotiate
Sydney’s auction market reinforces the softer picture. Cotality’s final clearance rate for the week ending 11 October was 45.6%, compared with 68.2% in the corresponding week last year. Auction volumes were also 36% lower annually.
That result relates to a specific earlier week, rather than the latest weekend. Even so, it is a useful reminder that an auction campaign does not guarantee a sale, and that negotiations before or after auction can matter as much as bidding on the day.
For buyers, the opportunity is to assess a property carefully and negotiate from evidence. Compare recent sales, investigate the building and location, and establish a firm ceiling that reflects both value and your finances. A softer market can create room to negotiate, but it does not make every asking price attractive.
What it means for your next move
Sellers need to work with current comparable sales and buyer feedback. A longer campaign can mean extra holding costs, so realistic pricing and a clear plan are important from the outset.
For investors, a lower purchase price is only part of the equation. Interest, strata levies, insurance, maintenance and vacancy assumptions still need to stack up.
My view is that this is a market for preparation and selectivity. There may be better opportunities to buy well, but there is no reliable signal that the bottom has arrived. Focus on the quality of the property, the price you can justify and repayments you can comfortably manage.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 22 October 2026
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalised advice and market expertise, reach out to Rodney today.
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