Auction Clearances Hit 10-Week Low as Aussie Housing Market Slows

Australia's housing market is experiencing a slowdown, with auction clearances hitting a 10-week low. The weighted average clearance rate for capital-city auctions was 50.3%, down from previous weeks and years.

Last week saw 1,428 homes taken to auction across the country's capital cities, a decrease of 22.4% from the prior week and 17.7% below the same time last year. Melbourne's auction schedule was significantly impacted by the AFL Grand Final long weekend, with volumes almost 70% lower than the previous week.

The Reserve Bank of Australia is expected to lift its key rate to 4.6% on Tuesday, which could further tighten affordability for buyers and sellers. Higher borrowing costs and the government's scrapping of tax breaks for residential property investors are driving down prices, leading to softer activity and sales in the market.