Australian auction clearance rates hit weakest since 2020

In June 2026 the monthly auction clearance rate in Sydney fell to 48 % and in Melbourne to 52.3 %, the lowest levels recorded since the COVID‑19 lockdowns of 2020. The decline follows a year of weakening auction performance as the Reserve Bank of Australia raised the cash rate three times to 4.35 %, tightening borrower capacity. Combined with reduced buyer confidence – partly attributed to the US‑Iran conflict’s impact on petrol prices and recent changes to investor property tax rules – demand for auctioned homes has slipped.

Over the past two weekends the early read on the clearance rate has held above 50 %, suggesting a possible short‑term stabilisation, but winter’s limited supply of homes for sale could keep the market tentative heading into spring. AMP chief economist Dr Shane Oliver warned, “I think it’s partly seasonal and owes to vendors pulling back their property from sale, on the grounds they want to get a higher price.”

Western Australia’s auction market is much smaller, accounting for about 1 % of listings, so the low‑volume clearance rates reported there (e.g., 40 % on a sample of 16 auctions) are not considered reliable indicators of broader market health.