Scarce quality homes push Melbourne buyers to compete harder at auctions
Melbourne auction clearance rates soared to 67.4 percent, the best weekend since early 2025, despite the RBA raising rates to 18-year highs.
Melbourne auction clearance rates jumped sharply to 67.4 percent from 48.1 percent the previous week, marking the best weekend since early 2025, even as the RBA pushed interest rates to 18-year highs. The reason is a shortage of quality homes on the market.
Owner-occupiers are competing hard for family homes ready to move into, while sellers sit tight in a falling market. Investors have all but vanished, down about 50 percent in recent transactions.
A shortage of decent stock means fewer sellers are listing, which pushes auction clearances up even as prices fall and borrowing costs rise. Ray White's chief auctioneer said a change of government at the November 28 state election could bring new rental policies that draw investors back.
- 67.4 percent
- Clearance rate
- 48.1 percent
- Previous week rate
- About 50 percent
- Investor transaction decline
- Luke Banitsiotis
- Chief auctioneer
Why it mattersHigh clearance rates mask a weak market where low supply drives competition for scarce properties rather than strong buyer demand.
AustraliaMelbourne home buyers face intense competition for quality properties despite rising mortgage costs, while a potential change of state government could shift investor interest back into the market.
