Cold feet and cooling prices: Australia’s property market is transforming – and first home buyers aren’t biting

Since late May, fewer than half of homes listed for auction each week have successfully sold. About 40% of listed homes are being sold before auction. Photograph: Lisa Maree Williams/Getty Images

First home buyers are starting to step back and investor demand is slumping in all areas except new property, as Australia’s housing market enters a downturn.

Research shows the market is transforming, nearly two months on from a third consecutive interest rate rise and sweeping tax reforms.