Preliminary clearance rates climbed last week, led by Melbourne, where sellers appear to be re-pricing properties and bidders are returning — but analysts caution this is not yet a recovery.
Melbourne had 654 homes go to auction (up 17% week-on-week) but listings remain almost 12% below last year and advertised stock sits about 8% above the five-year average.
Real estate professionals report stronger buyer turnout and fewer passed-in auctions as vendors soften price expectations, but research heads warn prices are not yet stabilising.
Early auction results for the week ending 9 August show a tentative improvement in the capital-city market, with Melbourne producing the strongest lift. Preliminary clearance rates for the combined capitals rose to 55.1%, the highest level in 11 weeks, and Melbourne recorded a 60.8% clearance rate — the first time it has topped 60% since late May.
Melbourne had 654 homes go to auction last week, a 17% increase on the previous week, though that volume remains 11.9% lower than a year earlier. Despite the jump in clearance rates, Melbourne's result is still below its 10-year average clearance rate of about 68%.
Cotality's head of research, Tim Lawless, cautioned that the improvement does not yet equate to a market turnaround. He said clearance rates would need to rise further and pointed out advertised stock is roughly 8% above the five-year average for this time of year. In short: activity is improving, but supply and the gap to long-run averages leave home values unlikely to stabilise immediately.
What agents are seeing on the ground
Local auctioneers report stronger buyer attendance and some solid sales over recent weekends. One auctioneer said he had about 70 groups inspect each property during a campaign, noticeably higher than in recent months. Auctioneers linked that shift to buyers observing lower new supply entering the market and responding to the possibility of missing opportunities.
Sellers are more anxious about pricing
Sellers have reacted to recent media coverage about price declines and weaker buyer sentiment by becoming cautious with reserves and asking prices. Agents recorded fewer properties being passed in, which suggests sellers are lowering prices to meet the reduced level of demand.
The practical state of play for buyers and sellers
Buyers: There appears to be incrementally stronger interest and slightly tighter effective supply at the auction level, which can create pockets of competition. However, broader market indicators and advertised stock levels still give buyers negotiation leverage in many suburbs.
Sellers: If you are selling, expect to face more price-sensitive bidders. Adjusting expectations closer to current buyer sentiment has already reduced pass-ins and lifted clearance rates in the short term.
Melbourne's auction market is showing early signs of increased activity as vendors adjust price expectations and buyer attendance rises. That combination has nudged preliminary clearance rates higher, but researchers warn it's too soon to call a market recovery because clearance rates remain below long-run averages and advertised stock is elevated.
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