To say this year’s federal budget has ruffled some feathers would be an understatement. The Albanese government announced major reforms to two tax breaks long seen as politically untouchable – negative gearing and the capital gains tax discount.

In response, some banks are reportedly tightening their lending to property investors. And there are early reports of lower attendance at open homes, suggesting buyer caution.

The government’s budget changes are not yet law. But two weeks on from budget night, are we already beginning to see the first ripple effects hitting the Australian property market?

And how much of what we’re seeing in the housing market right now – such as falling sales at auction – can really be attributed just to the budget?

Auction sales have been sliding for months

Auction clearance rates – the percentage of listed properties successfully sold at auction – fell the week after budget. Despite a slight rebound last week, they remain lower than usual.

The longer-term average rate sits in the mid-60s – meaning more than six out of ten homes........

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