Why the auction market just weakened to downturn-era levels

May 12, 2026 — 5:00am

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Home owners can no longer expect that their property is worth as much money as it was even a few months ago, as the auction market weakens to levels last seen in the 2022 downturn.

The monthly auction clearance rate fell to 53 per cent in Sydney and 58.5 per cent in Melbourne during April, Domain figures show.

Those results are below the 60 per cent threshold that indicates an auction market is balanced between buyers and sellers. When clearance rates are below 60 per cent, property prices are likely to be falling.

It’s a noticeable drop since early spring last year, when both cities were close to the 70 per cent mark that indicates solid, although not booming, price growth. By the start of the traditional spring selling season, the Reserve Bank had delivered three cuts to the cash rate, and borrowers were hoping for one or two more by Christmas.

But those cuts never arrived. Inflation numbers started to look less promising. Economists warned that interest rates would, instead, go up.

When buyers and sellers started the year in earnest in February, the monthly auction clearance........

© The Age