What happened this week
Australia's auction market hit a speed bump. Property researcher Cotality counted 1,735 auctions across the capital cities, 7.3% fewer than a week earlier and 17.7% below the same week last year, with the preliminary clearance rate down to 47.2%.
That is the lowest early read since April 2020, when lockdowns were throttling deals. In this instance, the main drivers were Melbourne's public holiday alongside expectations of costlier borrowing.
Melbourne's pause, Sydney's push
Melbourne saw a 38% weekly slump in auction numbers in the lead-up to the Melbourne Cup and the city's public holiday, which more than offset rising volumes elsewhere, including Sydney.
Sydney moved the other way. The city hosted 731 auctions, up 17.3% week on week, and its preliminary clearance rate climbed 5.6 percentage points to 53.8%.
Smart investors look for fresh tools that can clarify shifting market signals. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.
Rates set the backdrop
The Reserve Bank of Australia has lifted rates four times this year, putting its benchmark at 4.6%. With inflation running hotter than expected, investors are bracing for another move at the Nov. 2-3 meeting.
That backdrop matters for auctions because higher rates raise mortgage costs, often thinning buyer depth and making vendors more selective on price.
What it means for your portfolio
In plain English: a lower clearance rate and the risk of more tightening point to softer demand and tougher price discovery in housing. If you hold builders, banks, or REITs, watch how volumes and pass-ins trend from here, especially as Melbourne's holiday lull clears and the RBA decision comes into view.
A small informational advantage can help investors make calmer, more confident decisions. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.
