Cotality’s preliminary auction report revealed that the national clearance rate was 73.9% this weekend, which is the highest preliminary result since July 2024.
Source: Cotality
Melbourne recorded a preliminary clearance rate of 76.6%, which is the highest since May 2023.
Sydney’s clearance rate of 73.5% was the city’s highest since the week ending 23 February 2025, following the first interest rate cut.
Cotality’s daily dwelling values index has also bounced. At the aggregate 5-city level, values have risen by 0.6% over the past 28 days, which is the highest rate of growth since July 2024.
As shown above, Sydney dwelling values rose by 0.7% over the past 28 days, which is the strongest rate of growth since March 2025, immediately following the first rate cut.
Melbourne values have risen by 0.5% over the past 28 days, which is the strongest rate of growth since April 2025.
Financial markets have ascribed a 78% chance of the Reserve Bank of Australia (RBA) cutting the official cash rate by 0.25% at its July meeting.
Financial markets then expect a further two 0.25% rate cuts this year, taking the official cash rate to 3.10% by year’s end.
If these rate cuts come to fruition, it will obviously provide further stimulus to the market.
The Albanese government’s 5% deposit scheme for first home buyers, set to take effect from 1 January 2026, will provide further stimulus.
All signs are currently pointing to another boom in house prices, which will make Australian housing even more structurally unaffordable.
