Capital City Auctions Slump to Lowest Clearance Since 2020

Australia's combined capital city clearance rate hit 42.3% in the week to 22 June, matching COVID-era lows as vendor withdrawals and buyer hesitation intensify.

Australia's property auction market has hit its weakest point since the COVID lockdowns of 2020, with new data from Cotality painting a stark picture of retreating buyer confidence and increasingly cautious vendors.

A total of 1,880 homes went to auction across the combined capital cities in the week ending 22 June, down 10.3 per cent from the 2,095 held the prior week and 6.2 per cent below the 2,004 auctions conducted in the same period in 2025. The weighted average clearance rate finalised at 42.3 per cent — a fall of six percentage points from the 48.3 per cent recorded the previous week.

Annabelle Mezieres, economist at Cotality, placed the result in historical context: "The last time clearance rates fell to this level was 26 April 2020 (41.1%), a time when the Australian auction market was substantially disrupted by strict social distancing policies and a sharp deterioration in market confidence, resulting in a breakdown in normal auction activity."

[MPA Australia reports](https://www.mpamag.com/au/news/general/auction-clearance-rate-hits-lowest-level-since-covid-lockdowns/580268) that since Cotality began collecting auction data in 2008, clearance rates at this level have appeared in only three other periods: in 2011 and 2018 as the housing market navigated downturns, and during the early onset of the COVID-19 pandemic. This is not a one-week anomaly. A four-week rolling average also shows the weighted average rate trending lower, indicating a sustained shift in market conditions rather than a seasonal blip.

City by City: Where Buyers Are Pulling Back

The national figure masks significant variation between cities.

**Sydney** recorded 642 auctions — 17.9 per cent fewer than the 782 held the prior week — with a final clearance rate of 41.7 per cent, down 5.5 percentage points from 47.2 per cent. One of the more telling data points is that 178 of the 642 scheduled auctions (27.7 per cent) were withdrawn before going under the hammer. That level of vendor pull-back suggests sellers are increasingly reluctant to test the market in current conditions.

**Melbourne** showed more resilience on volume, with 923 auctions compared to 975 the week before — a 5.3 per cent decline. But the clearance rate dropped sharply by 8.3 percentage points to 43.6 per cent from 51.9 per cent. In Melbourne's case, the weakness was driven more by passed-in properties than withdrawals, with 393 of the 923 listings (42.6 per cent) failing to attract a successful buyer.

Taken together, pass-ins and withdrawals accounted for 1,085 of the 1,880 national auctions — or 57.7 per cent of all scheduled results. In other words, more than half of all properties that went to auction last week did not sell on the day.

**Brisbane** held 144 auctions, marginally up from 142 the week before, but the clearance rate fell four percentage points to 35.4 per cent from 39.4 per cent. That is the fourth consecutive week Brisbane has recorded a clearance rate below 40 per cent — a sustained shift from the stronger readings posted earlier in 2026.

**Adelaide** and **Canberra** were the only markets to record modest clearance rate gains, each on lower auction volumes. Adelaide's rate rose 2.2 percentage points to 48.4 per cent, while Canberra's improved 4.5 percentage points to 41.3 per cent. Perth hosted 15 auctions with a clearance rate of 23.1 per cent.

Looking ahead, Cotality estimates approximately 1,780 auctions are scheduled across the combined capitals this week — around 5 per cent below last week's count and roughly 12 per cent below the equivalent week in 2025. The following week is expected to see further easing, with approximately 1,400 auctions on the calendar as winter progresses.

What Weak Clearance Rates Mean for Buyers and Sellers

For buyers, a falling clearance rate is generally good news. More properties are passing in at auction and returning to the private treaty market, where there is considerably more room to negotiate. Vendors who could not sell at auction often become more flexible on price in the weeks that follow — particularly if they have a genuine need to transact. If you have been watching a property and missed the auction, it is worth following up. This is especially the case in Sydney and Melbourne, where pass-in and withdrawal rates are running at their highest levels in years.

For sellers, the message is harder. Setting an ambitious reserve in a market where fewer than 43 per cent of properties are clearing is a significant gamble. Vendors who need to sell — rather than simply want to sell — may need to adjust price expectations to meet the market where it actually is.

For buyers who are still getting their finances in order, this environment offers some breathing room. Use the time to understand what your budget actually allows. The [home loans comparison page](/home-loans/cheapest) shows current rates in the market, and the [borrowing power calculator](/calculators/borrowing-power) lets you model how much you could realistically borrow under current lending conditions. Getting pre-approval in place now means you are ready to move quickly when the right property comes up — whether at auction or in the quieter negotiation that often follows a passed-in result.

The data points to a market adjusting to new realities — shaped by rate hikes in 2026, shifting investor behaviour following federal budget changes, and the natural winter slowdown that historically reduces both volumes and confidence. Whether clearance rates stabilise from here or continue to soften will depend heavily on the RBA's next move and the flow of economic data over coming weeks.