Australian Home Auction Clearance Rates Fall Below 50 Percent
Australia's housing market slump deepens as auction clearance rates drop below 50 percent for a second week amid rising interest rates.
The Australian housing market slump is deepening as home auction clearance rates remained below 50 percent for the second consecutive week. According to data from Cotality, 48.8 percent of 1,781 properties were sold across six state capital cities.
Nationwide property prices in September retreated to levels seen a year ago. The decline is most pronounced in Sydney, where prices have fallen nearly 9 percent from their February peak. The number of auctions held during the first six weeks of the peak spring selling season has reached its lowest level since the 2020 pandemic lockdowns.
Market analysts attribute the drop in buyer demand to the central bank raising interest rates to a 15-year high. Additionally, tax changes introduced in the May Budget reduced concessions for property investors, further cooling the market.
