If you needed another signal the housing cool-down isn't over, here it is: of the 1,781 homes put under the hammer across six capital cities last week, just 48.8% sold, per Cotality. Although that exceeded the 45.4% posted the week earlier, clearance stayed beneath the halfway point for a second consecutive week.
Buyer interest is feeling the squeeze as the central bank has lifted interest rates to a 15 year high, which is curbing appetites. Beyond rates, rising borrowing costs more generally and May budget tax tweaks that pared back concessions for property investors have also taken some wind out of the market. Nationwide home values in September slipped back to levels last seen a year earlier, and in Sydney prices are down nearly 9% from a February peak.
Auction clearance rates turn before prices do, which makes them worth watching. Market Briefs reads housing data free every morning.
Sydney hosted 653 auctions last week, and the early clearance read was 52.9%. Melbourne put 707 homes to auction, and 54.8% sold on the preliminary read. Auctions remain a go to selling method in Australia, especially in Sydney and Melbourne, where sought after homes in established suburbs can draw big crowds in boom times. In softer markets, fewer auctions get across the line, particularly when seller expectations do not match where buyers are willing to meet.
Cotality says the spring selling season is unusually quiet so far, with the auction tally over its first six weeks the leanest since 2020. The upshot for regular buyers and sellers: when financing costs bite and policy shifts trim investor perks, fewer bidders show up and price momentum stalls. In that kind of market, the homes that still draw competition tend to be the best located and most realistically priced.
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