Australia’s auction market has hit its weakest point in years, with preliminary Cotality data showing a national clearance rate of just 55.5% over the Easter‑shortened week.
The low clearance came despite relatively modest auction volumes, suggesting demand rather than supply is doing more of the work.
The soft national result was mirrored across the major capitals. In Sydney, 389 homes went to auction – 8.4% more than Easter a year ago – with only 53.4% reporting a successful result so far, the lowest preliminary clearance rate since early July 2022. Melbourne saw 152 auctions, up 2.7% on Easter last year, and a 58.3% preliminary clearance rate – its weakest early result since September 2024.
Brisbane’s auction market also cooled, with 66 auctions returning a 55.7% clearance rate, the lowest since December last year, while Adelaide’s 57.7% rate was the weakest since June. The ACT was a relative bright spot, with 31 auctions and a 61.3% preliminary clearance rate, improving on the previous week.
Cotality expects about 1,990 homes to go under the hammer nationally next week, which should give brokers and borrowers a clearer read on whether the Easter slump is a one‑off or the start of a more sustained soft patch.
According to the Australian Financial Review, auctions “could slump to pandemic-level lows as war worries buyers”, with agents reporting that concerns about the Iran conflict, higher fuel prices, and the prospect of further rate hikes are keeping some bidders on the sidelines.
Buyers who might previously have stretched at auction are now factoring in higher running costs and the risk of a weaker jobs market, making them more sensitive to price guides and to how much buffer they hold in their repayments.
While a softer clearance rate can create opportunities for cashed‑up buyers, it can also complicate strategies for existing borrowers looking to sell and upgrade. Slower campaigns increase holding costs, while pass‑ins can limit options for highly leveraged borrowers who need a certain price to clear debt or fund their next purchase.
AFR notes some agents now expect auction volumes to fall sharply in coming weeks, potentially revisiting levels seen during COVID‑era lockdowns if the conflict drags on and petrol prices remain elevated. That would further reduce price discovery at auction and place more weight on private negotiations, valuations and lender risk appetite.
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