Leading into this weekend, the national final auction clearance rate had been stuck below 50% for eight consecutive weeks – the worst auction conditions since the depths of the COVID-19 pandemic.
This weekend’s preliminary auction results from Cotality have continued that trend, with the national preliminary clearance rate rising to only 52.4%, up 2.4 percentage points from last week’s 50.0%, which was revised down to 45.3% on final numbers.
An improvement in the withdrawal rate helps to explain the lift in auction clearance rates. Withdrawn auctions rose to 24% of all scheduled auctions over the week ending June 21 but have since reduced back to 17.4% this week.
The withdrawal rate remains elevated relative to 2025, however, when on average 11.8% of auctions were being withdrawn.
The preliminary clearance rate in Melbourne slipped back 1.9 percentage points to 54.6% (from 56.5% a week ago, revised down to 50.6% once finalised). After dipping as low as 50.2% over the week ending June 28, Melbourne’s preliminary clearance rate has been holding around the mid-50% range over the past four weeks.
Sydney’s preliminary clearance rate rose to 56.1% this week, a solid bounce from the 47.4% recorded a week ago (revised down to 42.4% once finalised). The rise in the preliminary clearance rate comes despite 29.8% of scheduled auctions being withdrawn from the market. 63.4% of successful Sydney auctions sold before the home went under the hammer.
Brisbane’s preliminary clearance rate dropped to 30.5% this week, 5.4 percentage points lower than a week ago and the second lowest early result so far this year. With such a low preliminary result, Brisbane’s final clearance rate is set to finish below the 40% mark for the ninth straight week.
The weakness in the auction market is being reflected in dwelling values, which have fallen across all major markets so far in July, apart from Perth:
The problem is that buyer demand has collapsed at the same time as for-sale listings have risen strongly across all major markets:
Source: Cotality
Weaker demand and rising supply are the recipe for falling home prices.
