Australia’s home auction markets weakened further last weekend as clearance rates declined despite a surge in new listings following the easing of holiday and sports-related distractions. The national average clearance rate fell to 44.4%, compared with 45.1% the previous week and well below the 67.3% recorded in the same period a year earlier. Market analysts point to ongoing buyer caution in anticipation of the Reserve Bank of Australia’s interest rate decision scheduled for November.
This slowdown highlights broader market conditions where supply continues to exceed demand, even after seasonal disruptions like the NRL Grand Final diverted attention from auctions. While 807 properties were listed—more than the 521 sold—both figures remained under the 1,189 homes listed in October 2025. Sydney’s performance was particularly weak, with its clearance rate plunging to 52.8%, its lowest point of the year, after a 60.0% rate the prior week and a stark drop from 76.4% in the same period last year. The sharp decline shows heightened buyer hesitation, with the city’s auction activity struggling to regain momentum even as listings rebounded post-distraction.
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Sydney’s regional market divides sharply
Sydney’s regional performance showed stark contrasts. The Inner West led with a clearance rate of 64.1%, followed by the City and East at 63.3% and the Lower North at 58.3%. The West lagged significantly at 28.6%, while units achieved a clearance rate of 61.9%, outperforming houses at 48.2%. The highest sale was a 5-bedroom home in Clovelly for $6.825 million, while the most affordable property was a 2-bedroom unit in Schofields at $530,000. The median price for houses sold at auction rose to $1.75 million from $1.615 million the prior week, though this still reflects a 6.8% decline compared to the same time last year, indicating persistent downward pressure on prices despite the recent uptick.
Melbourne’s market displayed greater stability, with clearance rates holding steady at 60.5%, unchanged from the prior week’s 59.5% but still down from 74.8% last year. Listings remained subdued, with 710 homes auctioned compared to 714 the week before, though both figures trailed the 1,188 from October 2025. The median price for houses rose to $1 million from $930,000, though it was 5.2% lower year-over-year.
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The Outer East recorded the highest clearance rate at 65.8%, while the Inner City lagged at 53.7%. As in Sydney, units cleared at a higher rate (68.0%) than houses (58.8%). The South East and West regions also performed relatively well, with clearance rates of 62.5% and 61.4%, respectively, suggesting stronger demand in these areas compared to the city’s core.
Melbourne’s steady but cautious recovery
Melbourne’s top sales included a 5-bedroom home in Hawthorn for $3.65 million, with the most affordable property a 2-bedroom unit in Caroline Springs at $440,000. The data indicates buyers are maintaining caution, as clearance rates in both cities have yet to recover to last year’s levels. The Reserve Bank’s upcoming meeting in November may further shape market sentiment, though current trends suggest subdued activity will likely continue in the short term. The persistent gap between supply and demand, combined with economic uncertainty, continues to weigh on market confidence, with sellers in weaker regions adjusting expectations and buyers remaining selective in their approach.