Real estate expert warns housing market is worse today than it was during the 1990s recession after shocking weekend

By NICHOLAS COMINO, POLITICAL REPORTER, AUSTRALIA Published: 07:25, 2 August 2026 | Updated: 07:25, 2 August 2026 Tom Panos has blasted the slowdown in housing sales, revealing he had only one auction on the weekend, a rate lower than the 1990s recession. In a video posted on Sunday, Panos said he had one auction booked for Sunday, a figure that is drastically smaller than the usual 10 to 15 auctions he usually conducts.  'This is the lowest level of auction activity I've experienced myself,' he said. 'I think this is the lowest since 1991.'  He said the situation was even more alarming because the lone auction attracted zero registered bidders, following multiple auctions the previous week that also failed to attract registered buyers. He said the one auction on Sunday was even fewer than the two or three auctions he would typically conduct during the 1990s recession.  Panos's remarks come as Australia's auction market continues to weaken.  Sydney recorded a clearance rate of 55.2 per cent in the week to August 1, down from 59.5 per cent a week earlier and well below the 77.5 per cent recorded during the same period last year, according to My Housing Market. Tom Panos (pictured) said that housing sales were now worse than during the 1990s recession  Nationally, the average clearance rate sat at 48.4 per cent, compared with 71 per cent a year ago. Separate preliminary figures from realestate.com.au showed New South Wales achieving a clearance rate of just 40 per cent from reported results.  Panos blamed changes to housing policy announced in the May budget, arguing the measures had discouraged property investors without successfully boosting demand for new homes. The Albanese government limited negative gearing to new builds and axed the capital gains tax discount of 50 per cent, changing it to a flat 30 per cent indexed to inflation. 'I'm interested in outcomes,' he said. 'And the outcome I'm seeing is a gridlock.' The veteran auctioneer said investors had not responded to incentives aimed at pushing them towards newly built homes, while first-home buyers remained cautious due to affordability pressures, borrowing constraints and fears prices could fall further. 'The investor waits. The first-home buyer waits. The vendor waits. The developer waits. And the market freezes,' he said. Housing sales have plummeted, with NSW recording a 40 per cent clearance rate on Sunday (stock image) Panos also warned of broader economic consequences if transaction volumes continue falling. Citing anecdotal evidence from agents and property data firms, he claimed transactions could be down as much as 40 per cent, potentially reducing stamp duty revenue collected by state governments and affecting industries tied to housing turnover, including mortgage broking, conveyancing, building inspections and removals. He further argued a drop in investor activity risked worsening rental shortages if fewer landlords entered the market. The warning from Panos comes as fresh data highlights the scale of Australia's housing supply challenge. New Australian Bureau of Statistics figures released this week show 18,328 housing approvals were granted in June 2026, slightly below the 18,375 recorded in June 2016 a decade earlier. For the 2026 financial year, housing approvals totalled 205,249, compared with 238,784 in 2016, a decline of about 14 per cent over the decade. The latest figures also show the cumulative shortfall against the National Housing Accord's minimum target has now reached at least 86,574 homes.