Auction clearance rates across Australia have plummeted to their lowest level in six years, with just 56.3% of homes sold at auction in the past week, according to data from CoreLogic. This marks a significant decline from the 70% clearance rates seen a year ago and reflects a cooling housing market amid rising interest rates and affordability constraints.
National and Capital City Trends
The national clearance rate has been declining steadily since the Reserve Bank of Australia began raising interest rates in May 2022. In the week ending June 21, 2026, Sydney recorded a clearance rate of 58.2%, down from 62% the previous week, while Melbourne saw a rate of 54.7%, a drop from 57%. Smaller capital cities also experienced declines, with Brisbane at 46% and Adelaide at 55%.
According to Tim Lawless, research director at CoreLogic, the current market conditions are the weakest since 2019. “We are seeing a combination of factors driving this downturn, including higher interest rates, reduced borrowing capacity, and increased listings as vendors become more motivated to sell,” he said.
Impact on Vendors and Buyers
The low clearance rates are forcing vendors to adjust their price expectations. Many properties are being passed in or withdrawn from auction, with only those priced realistically attracting buyers. In Sydney, the median auction price fell to $1.2 million, down 3% from the previous month. In Melbourne, the median auction price dropped to $850,000.
Buyers, meanwhile, are gaining more negotiating power. With fewer competing bids, some purchasers are able to secure properties below the reserve price. However, first-home buyers remain cautious due to high mortgage costs and stricter lending criteria.
Regional Variations and Future Outlook
While the downturn is widespread, some regions are faring better than others. Perth, for example, recorded a clearance rate of 62%, supported by strong demand and limited supply. In contrast, Hobart saw the lowest rate at 43%.
Looking ahead, analysts expect auction clearance rates to remain subdued for the remainder of 2026. The Reserve Bank is forecast to hold interest rates steady in the near term, but any further increases could exacerbate the slowdown. CoreLogic’s Lawless noted, “The market is likely to see ongoing weakness until there is more certainty around interest rates and economic conditions.”
