From UBS:
Auction clearance rates – while only a sub-set of the broader market – have weakened sharply over recent weeks, adding to prior months corrections lower (Figure 9). The current level of clearance rates has in the past been consistent with ‘flat’ house price growth. Despite this, the level of auctions volumes has strengthened by 20% over the past two months, a more positive signal. The recent renewed slowing in housing lending (Figure 10) also flags another period of slower house price growth over the next few months.
While the lag between new starts and activity suggest housing construction will continue to add to Australia’s GDP growth for much of 2016, the recent further slide in (local) consumers’ perceptions of whether now is a good time to buy a dwelling (Figure 11) suggests the recent moderation in the pace of building approvals is likely to continue to ease from its recent record pace.