Auction Clearances Slip to 53% as RBA Hike Risk Weighs on Buyers

National clearance rates eased to 53.2% this week even as volumes lifted, with Sydney stuck below 60% for 16 consecutive weeks.

Capital City Auction Results: The Numbers Behind the Softness

Australian Broker reports new data from Cotality showing that the preliminary auction clearance rate across the combined capital cities slipped to 53.2 per cent this week, pulling back after last week's 12-week high of 56.5 per cent.

Tim Lawless, head of research, Asia Pacific at Cotality, confirmed the headline result. While volumes moved in the opposite direction — 1,406 capital city homes went to auction this week, up 10.2 per cent from last week's 1,276 — the higher supply failed to sustain the clearance rate momentum of the week before.

The volume context is worth keeping in mind: while 1,406 auctions sounds busy, it is 31.9 per cent below the 2,066 auctions held in the same week last year. Sellers are still cautious about putting their property to market, and many are choosing to sell by private treaty rather than risk a public clearance test.

Cotality's August chart pack added important longer-term context: clearance rates have remained below 50 per cent since late May, and auction outcomes have historically shown a strong correlation with trends in home values — implying further downside pressure on property prices if the softness continues.

The RBA's Shadow Over Every Auction

The softer clearance results follow the Reserve Bank of Australia's decision to hold the cash rate at 4.35 per cent at its 11 August board meeting — the second consecutive hold. But RBA Governor Michele Bullock made clear that the board was not done. "The board will raise rates further if that is what is required to bring inflation down in a timely way," she said.

That open-door language on further hikes is doing real work in the market. Buyers who are already stretched by borrowing costs are not going to push hard at auction if they cannot be confident about where repayments will be in six months. The rational response — for many buyers — is to wait, watch and keep their powder dry.

For anyone actively trying to buy, that caution in the market creates a mild opportunity. When buyers pull back, clearance rates fall, and when clearance rates fall, sellers who need to transact are more likely to negotiate. A market running at 53 per cent clearance is not a market where you need to panic-bid.

Use the repayment calculator to model exactly what a loan would cost you at current rates, and scenario-test what an additional rate rise would do to your monthly budget. That exercise is worth doing before you walk into any auction room.

City-by-City Breakdown

The headline number conceals very different conditions across the capital cities.

**Melbourne** was the busiest market this week with 600 homes going to auction, up 2 per cent on the previous week but down 39.1 per cent year-on-year. Melbourne's preliminary clearance rate fell to 55.4 per cent — its weakest early result in four weeks.

**Sydney** held 482 auctions, a 17.6 per cent rise week-on-week but still 33.9 per cent below the same week last year. Sydney's preliminary clearance rate rose to 56.6 per cent on the week, though final numbers for the prior week were revised down to 47.1 per cent. Sydney's preliminary clearance rate has now held below 60 per cent for 16 consecutive weeks — a sustained signal of cooling demand in what is Australia's most expensive major market.

**Canberra** saw auction volumes jump to 67, up from 43 the previous week. Its preliminary clearance rate fell sharply to 41.4 per cent, down from a revised 53.5 per cent the week before, suggesting significant buyer resistance at current asking prices.

**Brisbane** held 153 auctions, up 7.7 per cent week-on-week, with 40.4 per cent reporting a successful result so far.

**Adelaide** recorded 92 auctions, up 9.5 per cent week-on-week, with a preliminary clearance rate of 54.8 per cent — one of the stronger results relative to its volume.

**Perth** recorded just 11 auctions with 2 clearing so far, while the single auction scheduled in **Tasmania** this week was withdrawn before it reached the market.

What This Means If You're Buying, Selling or Refinancing

If you are a buyer, a 53.2 per cent clearance rate means you have more negotiating room than you would in a hot market running above 65 per cent. But a cooling market also demands careful property selection. If downward price pressure continues, properties purchased now could see further softening before any recovery. The key question for any buyer in this environment is what the property is worth to you over a 5- to 10-year horizon — not what it might be worth in six months.

If you are buying a home to live in and the numbers stack up at today's repayments, short-term price movements matter less than the total cost of the loan over time. Check your borrowing power first and make sure you have room in your budget to absorb a further rate rise if the RBA does move again.

For sellers, the message from these results is straightforward: pricing realistically matters more than ever. In a market where final clearance rates in Sydney have recently revised back to 47.1 per cent, overpricing is a real risk. Listing too high and passing in at auction does not help your negotiating position.

Whether you are buying, selling or simply trying to understand whether your current home loan is still competitive in this environment, comparing current offers at /home-loans/cheapest is a useful first move. And if you are a first-home buyer trying to work out whether this slower market is your window, the first-home buyer guide covers the schemes and strategies worth knowing.