Spring auction volumes fall 31% as clearance holds steady

Auction volumes across Australia's combined capital cities fell 31.1% from a year earlier in the opening week of the spring selling season, while the preliminary clearance rate was broadly steady at 52.7%, Cotality reported.

A total of 1,462 homes went under the hammer across the capitals, unchanged from the previous week and the fourth straight week in which auction activity was more than 30% below year-earlier levels. The result left the start of spring only marginally ahead of the winter trend, with the preliminary clearance rate 41 basis points above the winter average of 52.3%.

The figures suggest the market has yet to show a strong seasonal lift, despite the traditional spring increase in listings and auction activity. Auction numbers are expected to rise in the coming weeks to about 1,640 and then 1,900, making the next fortnight a clearer test of buyer demand.

Melbourne recorded the most auctions among the capital cities, with 662 homes taken to market. That was 2.8% higher than the previous week but 27.9% lower than the same week last year.

The city's preliminary clearance rate rose to 58.2% from 54.9% a week earlier, its highest level in four weeks. Even so, the increase came against a backdrop of lower volumes than a year ago.

Sydney followed with 523 auctions, also up 2.8% from the previous week and 27.9% lower than the equivalent period last year. Its preliminary clearance rate rose 1.4 percentage points to 57.7%, the highest level in 18 weeks.

Together, Melbourne and Sydney accounted for the vast majority of auction activity across the combined capitals, and both posted firmer early clearance results than a week earlier. That helped keep the national headline rate stable even as other cities showed weaker conditions.

Mixed capitals

Brisbane recorded 133 auctions, down 8.9% from the previous week and 7.6% lower than a year earlier. Its preliminary clearance rate remained weak at 24.8%, the second-lowest reading of the year so far after the 23.8% result in the first week of June.

Adelaide held 95 auctions, down 6.9% from the previous week but up 13.1% from the same week last year. Just 34.5% of auctions cleared, a drop of 16.2 percentage points and the city's lowest early clearance rate since April 2020.

Canberra's preliminary clearance rate fell to 36.7%, its lowest point in seven weeks and below the winter average of 45.4%. The capital hosted 35 auctions during the week, down 27.1% from the previous week and half the number recorded a year earlier.

Perth recorded 13 auctions, with one-third of properties selling. Tasmania saw only one auction.

Spring start

The first week of spring is often watched closely for signs of how sellers and buyers will behave during the busiest period of the housing market calendar. This year's opening numbers suggest the seasonal uplift in volumes has been slow to emerge, with activity still well below last year's levels even before the market reaches its usual spring peak.

The steady combined clearance rate indicates buyer demand has not weakened at the same pace as supply, at least in the larger east coast markets. Melbourne and Sydney both improved on the previous week, while the smaller capitals produced a more uneven picture, with Brisbane, Adelaide and Canberra all posting comparatively soft results.

That divergence matters because the combined capitals figure can mask sharp differences between local markets. Stronger results in Melbourne and Sydney can support the aggregate clearance rate even when smaller auction markets report low sales conversion and falling volumes.

For sellers, the early spring market is presenting a narrower field than a year ago, with fewer properties going to auction across most capitals. For buyers, the figures suggest conditions remain selective, with clearance rates still close to winter averages rather than showing a decisive spring breakout.

Annabelle Mezieres, Economist, Cotality, said auction volumes were "31% down on last year, as clearance rates steady".