What slowing auction clearances mean for buyers and sellers right now
Auction clearance rates across Sydney and Melbourne have fallen sharply in early 2026. Sydney’s rate dropped to 50.4% in the final week of March, the lowest since July 2022. Melbourne’s rate came in at 54.2%. With fuel prices pushing up the cost of living and the Reserve Bank warning that further rate rises may be needed, buyer confidence has taken a real hit. This article breaks down what the auction clearance rates 2026 data means and what you can do about it.
The numbers
The figures tell a clear story. Bidder numbers at the average Sydney or Melbourne auction were one-third lower in late March 2026 compared to a year earlier, according to Ray White data. Finalised sales in both cities fell from close to 30,000 in the December quarter to under 20,000 in the March quarter.
Homes that were selling in 30 days or less late in 2025 are now sitting on the market for 33 days in Sydney and 35 in Melbourne. Consumer confidence, according to ANZ survey data, has fallen to a record low. You can check your borrowing power to understand how rate changes affect what you can afford before you commit to any offer.
Seller shifts
Vendors are responding in two ways. Some are pulling their homes from auction entirely. Sydney’s auction withdrawal rate hit 20% in the final week of March 2026, the highest since 2022, and preliminary data suggests it has since climbed to 30%. Others are quietly accepting offers well before auction day.
In Melbourne, private treaty sales rose from around 2,000 per week to 2,400 per week through March, as sellers who were not confident in the auction process moved to direct negotiation. The broader impact of fuel price pressures on household finances is explored in our piece on fuel prices and home loans.
Buyer advantage
This shift creates real opportunity for buyers in Sydney and Melbourne. With fewer competing bidders, you have more room to negotiate. Buyers’ agents report more homes selling before auction day and more passed-in properties sold by negotiation at prices below the vendor’s initial expectation.
One Sydney auctioneer noted he was reconsidering a property originally priced at $1.6 million, given open home attendance had fallen to just seven visitors instead of the expected 20. The market has not collapsed, but buyers willing to negotiate firmly are finding a level of flexibility that did not exist 12 months ago.
Smaller capitals
The picture is different outside Sydney and Melbourne. Brisbane, Adelaide and Perth have all seen listed stock decline over the past year. In Perth, the average home was selling in just nine days in March 2026. Where supply remains tight and population growth continues, sellers still hold the upper hand.
If you are looking at markets beyond the two largest capitals, talk to a Serres broker about what local conditions mean for your borrowing strategy and purchasing timeline. The advice you need differs significantly from city to city right now.
Your next step
If you are buying in the current market, now is a good time to get your finances in order. Knowing your maximum borrowing capacity before you approach any negotiation puts you in a strong position. You also want to know how a potential RBA rate rise would affect your repayments, so there are no surprises.
Estimate your borrowing power using our free calculator, or speak to a Serres broker directly to get a clear picture of where you stand before making any offer in this shifting market.
Common questions
Q: What does a 50% auction clearance rate mean for buyers?
It means roughly half the properties listed for auction are not selling on auction day. Some will sell by private treaty shortly after, others will be withdrawn. For buyers, a lower clearance rate typically signals more negotiating room and less competition at the auction itself.
Q: Should I wait for prices to fall further before buying?
Trying to time the market is difficult. If your finances are in order and you find a property that works for you, the current environment with lower competition and more room to negotiate can be a good time to act. A Serres broker can help you assess whether now is right for your situation.
Q: What is causing the drop in auction clearances in 2026?
A combination of factors is driving it: higher fuel costs pushing up household expenses, falling consumer confidence, and the risk of further RBA rate rises. Together these have made buyers cautious, particularly in Sydney and Melbourne.