A brutal reality check for the housing market
The Australian housing market is experiencing a significant downturn, with auction clearance rates falling below 50% in major capital cities. This decline follows recent interest rate hikes by the Reserve Bank, which have negatively impacted property values and auction success.
Why it matters
The cooling housing market reflects broader economic pressures and the impact of monetary policy on consumer wealth and real estate activity.
The Reserve Bank’s latest interest rate hike has dealt a hammer blow to the property market.
After last week’s final national auction clearance plunged to only 45.4%, the softest result since 19 July 2026, this week’s results are not much better.
This weekend’s preliminary clearance rate was only 48.8%, a slight rise from last week (48.2%, revised down to 45.4% once finalised).
This was the second weekend in a row that the combined capital city preliminary clearance rate has stayed below 50%, returning to levels seen in mid-to-late June.
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