One of the big takeaways from this past weekend’s auction results is that the way a property is priced and positioned in the market can make or break its success. While Melbourne continues to see strong buyer interest and high levels of activity, we’re also seeing a clear shift in buyer behaviour and it’s something sellers and agents need to pay close attention to.

Scheduled Auctions
1249
Reported Auctions
730
Total Sold
603
Total Passed In
127
Clearance Rate
83%

Scheduled Auctions
1184
Reported Auctions
881
Total Sold
621
Total Passed In
197
Clearance Rate
70%

The reality is, if a property is perceived to be overpriced, the market reacts swiftly. Buyers walk away. Auctions fall flat.

In a competitive environment like Melbourne’s, that’s a risk vendors can’t afford to take.

So what’s changed?

Buyers are becoming more price-sensitive. Unlike the height of the pandemic boom where FOMO (fear of missing out) drove frenzied bidding, today’s buyers want to feel like they’re getting a fair deal or at least the potential for one before they allow themselves to get emotionally invested.

This applies across the board: whether it’s first-home buyers looking for value, or investors crunching the numbers, people want to see social proof that a property is worth their time and money. That might come in the form of other interested parties, strong attendance at inspections, or signs that a property is competitively priced relative to similar stock.

In essence, buyers want to believe they’re getting a bargain before they throw caution to the wind and decide they must have it.

What we’re seeing could be the early signs of FOMO re-emerging but this time with conditions. Buyers aren’t blindly jumping in anymore. They’re watching and waiting for confirmation that others are interested before acting.

At the same time, there’s increasing pressure on the agent side of the market. With listing volumes down and more agents competing for fewer opportunities, some are resorting to what’s often referred to as “buying listings” overpromising price expectations to vendors in order to secure the listing. In a marketplace where stock is tight, the temptation to win the business at any cost is strong. But the fallout can be severe.

Overpriced listings not only fail to attract buyers, they can also sit on the market and quickly become stale, damaging both the vendor’s potential sale outcome and the agent’s credibility. Vendors are left disappointed, and buyers become wary. In the end, the whole process becomes harder and more emotionally draining for everyone involved.

For sellers, it’s more important than ever to choose an agent based on strategy, transparency, and proven results not just the highest estimated price. And for agents, it’s a reminder that setting realistic expectations and building trust still delivers the best long-term outcomes, especially in a market where perception and momentum are everything.