Home auction clearance hits post-pandemic low as buyers hold back
Only 47.2 per cent of homes sold at auction last week, the lowest share since April 2020.
Home auction clearance rates have plummeted to their lowest level since the early pandemic as buyers hold off amid uncertainty over interest rates. Just 47.2 per cent of eligible homes sold at auction in the past week, down from 53.8 per cent in Sydney and as low as only 26.2 per cent in Brisbane.
The weak result came despite fewer homes being auctioned overall, with only 1,735 properties on the market. The Reserve Bank is expected to raise the cash rate again on Tuesday, which would push it to 4.85 per cent, the highest since 2008.
A household with a $600,000 mortgage would pay an extra $456 per month if the rate rises, according to comparison site Canstar. Fast-falling prices have failed to attract buyers facing stretched affordability and tighter borrowing limits.
Clearance rates below 60 per cent typically signal a falling market.
- 47.2 percent
- Clearance rate
- 1,735
- Properties auctioned
- 4.85 percent
- Expected cash rate
- 456 dollars
- Extra monthly cost
Why it mattersAuction clearance rates signal where property prices are heading. Weak sales suggest house prices will keep falling, affecting homeowner equity and investment returns.
AustraliaAustralian homeowners and investors face ongoing price falls and tighter borrowing conditions. Rising rates will make mortgages more expensive for millions of households.
✓ Claims checked against the source. checked 3 h ago
