Fewer than half of homes at auction are selling this spring: clearance rate falls to 44.1%

Only 44.1% of homes taken to auction across the capital cities sold in the week ending 11 October, according to Cotality's final figures. A year earlier it was 68.2%. It is the lowest weekly result since late June and the fourth weekly fall in a row, in the part of the year when auctions normally pick up.

44.1%

The spring lift has not arrived

Spring is usually the busiest and strongest time of year for auctions. Not this year. Cotality economist Annabelle Mezieres wrote that the spring market "has not delivered the usual lift in auction performance", and that with volumes well below last year, "buyer demand appears to be the main constraint."

The week before was no better. The week ending 4 October, which included a long weekend in several states, cleared 45.4% of 1,212 auctions, 38.1% fewer than a year earlier.

Source: Cotality final clearance rates, week ending 11 October 2026.

Fewer sellers, and even fewer buyers

The odd part is that sellers are already holding back. Auction numbers in Sydney were 36.0% below a year earlier and Melbourne's 43.7% lower. Normally that would help clearance rates, because buyers have less to choose from. It has not, which is why Cotality points to demand.

Brisbane shows it most clearly. Its auction volumes are higher than last year, up 55.1%, but its clearance rate has fallen the most of any capital. Cotality's read is that the extra spring listings "aren't being met by more buyers."

Private sales tell the same story. Cotality's home value index found capital city homes were taking a median 39 days to sell, against 23 days a year earlier, and total listings were 23.1% higher than a year ago because stock is sitting longer. National values have fallen for six months and are 5.2% below the March peak.

Why buyers are scarce

Three things are weighing on demand at once:

• Rates. The cash rate is 4.60% after four rises this year. Borrowing capacity has fallen with every rise, and the Board meets again on 2 to 3 November.
• Investors. The PropTrack Terri Scheer Investor Report found investor loans fell 9% in the June quarter, with demand shifting to new builds. We covered it in our report on investor lending.
• Expectations. With prices falling, buyers have little reason to stretch at auction when they can wait or negotiate after a pass-in.

What this means for landlords

1. If you are selling, plan for a longer campaign. Fewer than half of auctions are clearing. Ask your agent for recent results on comparable properties in your suburb, not the city-wide headline, and decide your floor before auction day.
2. Consider the method, not just the timing. In a thin market a private treaty sale or a set-date sale can suit some properties better than an auction that risks a public pass-in. There is no single right answer; it depends on the property and local demand.
3. Do not sell in a weak spring only because of the CGT change. Gains made up to 1 July 2027 keep the 50% discount whenever you sell, as we explain in the CGT changes for landlords. Selling now to beat a 2027 change can cost more than it saves.
4. If you are buying, the leverage is yours. More pass-ins and longer days on market mean more room to negotiate on price and terms. The numbers still have to stack up at a rate of 6.75% or more.
5. If you are holding, keep your tenant. A sale is harder to execute this spring, and a vacancy while you decide is expensive. A good tenant on a fair renewal is worth more than usual right now.

Cotality expects about 1,900 auctions in the week to 25 October before volumes ease again in early November. The 3 November rate decision will be the next big test of buyer confidence.