Cotality reported 1,423 homes went under the hammer across the capitals last week, down 18.6% from the prior week and about 46% below the same period last year. Its read on upcoming listings points to another step lower in the week ahead.
Auction outcomes nudged higher, with 51.2% selling versus 48.8% a week earlier. Even so, the preliminary spring clearance rate of 52.0% sits a touch under the 52.3% winter average.
Melbourne hosted 500 auctions, a 28.9% weekly slide that followed the rollout of new rules requiring disclosure of reserve prices. Auctions remain a go-to sales path in Sydney and Melbourne, but with borrowing costs at a 15-year high, the format is less enticing for some sellers and bidders.
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In a move aimed at curbing inflation, Australia's central bank raised the cash rate to 4.6% last month, marking the fourth hike this year and the highest level since 2011. The effect is likely to keep weighing on property prices.
In plain English: fewer listings plus only a modest pickup in clearances equals a cooler auction market as financing costs bite. For housing-exposed stocks and REITs, watch whether Cotality's expected further drop in auction volumes shows up in slower price gains and thinner turnover.
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