Australia’s housing market slowdown is showing little sign of easing, with weak buyer demand and elevated auction withdrawals contributing to subdued results across the nation’s capital cities.
New data from Cotality revealed the national preliminary auction clearance rate sat at 53.4 per cent this week, based on 1,421 scheduled auctions.
Although auction volumes increased modestly—rising 4.8 per cent last week and a further 4.0 per cent this week—they remain well below historical levels.
Cotality research director Tim Lawless said the increase should be viewed in context.
“The volume of auctions is consistently tracking lower than a year ago, down 16.9 per cent from the same time in 2025,” Lawless said.
He added that a decline in auction withdrawals had helped support preliminary clearance rates.
“Withdrawn auctions rose to 24 per cent of all scheduled auctions over the week ending June 21 but have since reduced back to 17.4 per cent this week,” he said.
“The withdrawal rate remains elevated relative to 2025, where on average 11.8 per cent of auctions were being withdrawn.”
Auction Rooms Fall Silent
Real estate agents and auctioneers say the slowdown is becoming increasingly apparent on the ground, with many weekend auctions attracting little or no buyer interest.
Sydney-based auctioneer and Real Estate Gym founder Tom Panos described recent auctions as unusually quiet.
“You know when the market’s quiet when the only person to show up to an auction is the agent. Not even the vendor,” Panos said in a social media post.
“Today I’ve done two auctions, nothing. Not a buyer registered. The first one, the vendor showed up and the agent. The second one, the vendor didn’t even show up.”
Panos compared the current conditions to the property downturn of the early 1990s.
“I had it open for 16 weekends in a row… not one inspection, not one buyer. Week after week, nothing,” he said.
Raine & Horne auctioneer Pete Matthews echoed those concerns, telling The Sydney Morning Herald that an apartment auction on Sydney’s lower north shore attracted just a single bid.
“This is the worst I have seen it, and that’s taking into account the GFC,” said Matthews, who has more than 30 years of industry experience.
“I think we’re at pricing from four years ago.”
Melbourne Leads Activity Despite Weak Conditions
Melbourne remained Australia’s busiest auction market, with 707 homes going under the hammer. That represented an 18 per cent increase from the previous week but was still 10.1 per cent lower than the same period last year. The city’s preliminary clearance rate has remained in the mid-50 per cent range over the past month.
Sydney hosted 433 auctions, down 2.3 per cent from the previous week and 27.5 per cent lower than a year ago. Its preliminary clearance rate improved to 56.1 per cent despite nearly 30 per cent of scheduled auctions being withdrawn.
Brisbane recorded 134 auctions, down 18.3 per cent week-on-week and 28.3 per cent lower than the same week last year.
Adelaide hosted 99 auctions, a 10 per cent decline from the previous week but almost 24 per cent higher than a year earlier. The city recorded a preliminary clearance rate of 52.6 per cent.
Canberra held 38 auctions, down 9.5 per cent from the previous week and 22 per cent lower than the same time last year.
Auction activity remained subdued in Perth and Tasmania, with just 10 auctions and no auctions recorded, respectively.
Signs of Opportunity Amid the Downturn
Cotality expects auction activity to increase slightly next week, with approximately 1,570 homes scheduled to go under the hammer.
Despite the challenging conditions, Panos believes quieter markets can present opportunities for buyers willing to act while competition remains limited.
“Before anyone panics, markets like this feel lonely. They test agents, they test sellers, they test buyers. So here’s what I’ve learnt after decades in real estate,” he said.
“The quietest markets create the biggest opportunities, because when everyone is waiting for the crowds to come back, there are a few smarties out there, opportunistic buyers are getting on with business.”
With that in mind, at Town and Country Real Estate, we have a few properties that have open house inspections this Saturday.
3/12-16 Hope St, Rosehill – 11:30am – 12:00pm
15 Craig St, Punchbowl – 12:45pm – 1:15pm
53 Mary St, Merrylands – 2:00pm – 2:30pm
