The auction clearance rate is approaching a key benchmark which could tip the property market well in sellers’ favour, just in time for the traditional spring selling season.

Clearance rates in Sydney and Melbourne have been rising and reached 68.2 per cent and 69.3 per cent, respectively, for the month of July. This was up from about 66 per cent in June.

It’s the highest since June 2023, other than February last year in Sydney, which recorded a rate of 68.3 per cent. Falling interest rates and few homes for sale are contributing to rising clearance rates.

Economists have kept a keen eye on the figures because it gives a timely and fairly reliable indication of what prices will do. The clearance rate is calculated by taking the number of successful sales and dividing by the total number of auction results reported to researchers by deadline. Domain uses a weekly figure to catch auctions not held on Saturdays.

A clearance rate of 60 per cent is considered a balanced market. North of there will bring small price increases, and passing the benchmark of 70 per cent........

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