Australia housing clearance rate remains below 50%

• The national auction clearance rate stayed below 50% for the second straight week.
• Property buyer demand weakened following interest rate increases to 15-year highs.
• Spring auction volume dropped to its lowest level since the 2020 pandemic lockdowns.

Australia’s home auction clearance rate reached 48.8% last week as higher interest rates weakened buyer demand across major cities.

The preliminary clearance rate rose from 45.4% in the previous week, but total spring auction volumes dropped to their lowest levels since 2020, according to Cotality.

Nationwide property prices fell back to year-ago levels in September as higher borrowing costs and federal tax changes reduced investor demand.

Sydney property prices dropped nearly 9% from their February peak, while auction clearance rates in the city reached 52.9% across 653 listings.

Melbourne hosted 707 property auctions last week and recorded a preliminary clearance rate of 54.8%.

Auctions represent a major sales method in key Australian metropolitan markets, where competitive bidding typically drives property values during market upturns.

Seller price expectations often disconnect from buyer capacity during market downturns, resulting in lower transaction completion rates across capital cities.