Australian Home Auction Clearances Plummet Amid Rate Hike Fears

Australia's home auction clearances hit a 10-week low last week as a long weekend in Melbourne and the looming threat of higher borrowing costs weighed on sentiment.

The Reserve Bank of Australia is expected to raise its key interest rate to 4.6% on September 29, which may further dampen buyer enthusiasm for homes.

A total of 1,428 homes were put up for auction in the nation's capital cities last week, a 22.4% drop from the previous week and 17.7% less than a year earlier, according to property researcher Cotality.

The weighted average clearance rate was 50.3%, with Sydney holding the most auctions at 790 homes, but its clearance rate of 53.6% was the lowest in eight weeks.