The preliminary clearance rate dropped to 48.2 per cent in the past week, its lowest since late June (47.4 per cent) and the second lowest preliminary reading for the year so far, according to property research firm Cotality. The rate has hovered at or below 50 per cent for several months, coinciding with steep declines in property prices and weak market sentiment.
Across the nation's capital cities, 1,223 auctions were held last week, a 12.8 per cent decrease from the previous week and a 47.5 per cent drop compared to the same week a year ago.
Cotality research director Tim Lawless attributed the weak result to long weekends in some states and the Reserve Bank's decision to lift interest rates for the fourth time this year. He also noted the impact of changes in the federal budget, including heavily restricted negative gearing and higher capital gains tax for sellers.
Sydney and Melbourne were the main drag on the national result. Sydney held 304 auctions, down 61 per cent from the week before and 38.5 per cent from a year ago. Melbourne held 670 auctions, a 136 per cent jump from the previous week (the AFL grand final long weekend), but over 12 months auction numbers in Melbourne have dropped 45.6 per cent, the largest decline of any capital city.
Separate data from SQM Research shows some homes are sitting unsold for as long as six months. Listings that have been on the market for more than 180 days increased by 10.5 per cent compared to a year ago, indicating that older stock is clogging the market.