HOUSING

Auction clearance rate slumps to 57% nationwide as interest rate hikes prompt Australians to sell

Homebuyers lose confidence amid higher rates and Iran war-linked price rises across the economy, buyers agent saysFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastSurging numbers of homes are being passed in at auction as higher…

By The Guardian

• March 26, 2026 at 6:41 AM

Auction clearance rate slumps to 57% nationwide as interest rate hikes prompt Australians to sell Photo: The Guardian

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The national auction clearance rate last week was just under 57%, the lowest this year, with Sydney’s at 55%, Cotality data shows.

The remainder includes both houses that did not sell at auction and houses withdrawn before auction.

The national rate had held at or near 66% from mid-2025 until January, excluding a typical end-of-year slip.

The recent fall represents the biggest January-March slide in the clearance rate since the pandemic.

A rate closer to 70% indicates a seller’s market.

“A lot of auctions are passing in or not even making it to auction day,” he said.

“I don’t think it’s even worth taking your property to auction, unless it’s really special, at this point in time.”
Properties in Sydney’s outer suburbs were still popular but the inner city had become a “buyer’s market”, Bindley said.

Back-to-back interest rate hikes made it more difficult for buyers to afford a new loan.

The typical mortgage rate had risen to about 6%, from about 5.5% at the start of the year, meaning someone earning $107,000 could borrow about $535,000, or $25,000 less than they could have in January, Canstar found.

First-time hopefuls had stepped back even in more affordable areas where competition has been stronger , such as Brisbane’s western corridor, according to the Loan Market mortgage broker Justin Hewitt.

“In the last two or three months, there’s a bit of a market slowdown, and [I’m] seeing a little bit more of investors and upgraders,” Hewitt said.

Rising house prices in 2025 had pushed up sale profits, with resellers’ gains hitting a record $365,000 in December, Cotality found.

More than 95% of those who resold their properties in the December quarter sold at a profit.

Big banks expect the RBA to hike interest rates once more when it meets in May, while markets are betting on yet another increase by November.