Megan Lieu, Senior Economic Analyst at REA Group
First published 12 Nov 2026, 1:27pm
Spring typically sees a rise in auction numbers and clearance rates in Australia, however the traditional seasonal uplift hasn't eventuated this year, new data shows.
According to new data from realestate.com.au, national clearance rates reached 40% last week. In Sydney, Melbourne and Brisbane, where the majority of auctions take place, clearance rates were 38%, 51% and 21%, respectively.
Since the start of spring, weekly clearance rates on average have been 41% nationally, 40% in Sydney, 52% in Melbourne and 23% in Brisbane, which is well below their respective five-year spring averages of 54%, 55%, 60%, and 42%.
Clearance rates have trended downwards since February, when interest rates began rising again this year. While clearance rates tend to rise in spring as a result of seasonal demand, they have remained subdued this year.
These lower auction clearance rates reflect a continued misalignment between buyer and seller expectations regarding price for properties that are going to auction.
As interest rates have risen, borrowing capacities have fallen and demand has eased. At the same time, some sellers’ price expectations have yet to adjust to the change in market conditions, with potential buyers turning to other options that meet their budgets.
Not only are clearance rates lower but auctions as a share of sales (private + auction combined) has also declined.
In Sydney and Melbourne, our largest auction markets, sales made via auction have made up 13.2% and 15.7% of preliminary sales so far this spring, compared to 17.5% and 23.7% of respective sales over the same period last year.
The year-on-year decline highlights a growing preference among sellers for private treaty sales over auctions.
When there is strong competition among buyers, auctions are often a preferred method of sale but this retreat from auctions shows that competition is likely weakening and that buyers may have more negotiating power than we’ve seen in recent years.
New October days on market data shows that properties are taking over two weeks longer to transact compared to February 2026 (when cash rates first rose), up from 29 to 44 days, nationally.
In capital cities, days on market has increased from 26 days to 39, while regional areas have risen from 42 to 55 days. For those in the market, this trend may mean more time to weigh up options and more scope to be selective, in addition to more leverage, irrespective of where they are looking to buy.
With the recent November cash rate increase and borrowing capacities tightening again, as a result, it is proving increasingly difficult for Australians to afford a home. Despite national home prices declining throughout most of 2026, housing affordability is likely to remain at near record lows.
This is expected to continue dampening demand which may see auctions make up an even smaller share of sales in the coming months as more buyers shift to private treaty to adjust to the current market. Buyers are anticipated to remain in a favourable position, with more bargaining power than in periods of stronger market activity.
Auction clearance rate trends are dependent on how buyers and sellers adjust their expectations. Interest rates are likely to remain at their 18-year high in coming months, making borrowing capacity improvements unlikely.
If sellers adjust their price expectations to meet buyer’s reduced budgets, clearance rates may recover, however, if the gap persists, we may see clearance rates stay at these lower levels.
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