The Australian property market is experiencing a significant stress test, with the preliminary combined capitals auction clearance rate tumbling to 62.7% last week, marking the weakest result recorded so far this year. According to the latest data released by property analytics firm Cotality, this noticeable softening brings nationwide clearance rates directly on par with the seasonal low point observed at the tail end of last year’s auction season in mid-December.

This unmistakable cooling in buyer competition comes precisely as the volume of properties hitting the market begins to rapidly escalate. Last week, a robust 2,857 homes were taken under the hammer across the combined capitals. This figure represents a 2.4% increase from the previous week and stands as the second-highest weekly number of homes taken to auction in 2026. Strikingly, every single capital city across the nation recorded a week-on-week decline in their preliminary clearance rates, signaling a broader macroeconomic trend rather than isolated, city-specific fluctuations.

Melbourne led the charge in sheer volume, hosting 1,412 auctions—the city’s second-highest volume of the year and a notable 15.6% higher than levels recorded at the same time last year. However, this heavy influx of supply clearly weighed on Melbourne’s preliminary clearance rate, which slipped to 64.2%. This marks a 2.7 percentage point drop from the previous week and stands as the city’s weakest performance since the Easter-impacted week of April 20th last year.

Sydney mirrored this downward trajectory. Despite hosting 1,008 auctions—an impressive 24.4% surge compared to the same week last year—the Harbour City saw its preliminary clearance rate drop sharply by 4.3 percentage points to settle at 60.8%. This represents Sydney’s lowest early auction result since mid-December.

The nation’s smaller markets also felt the pinch of increasing stock levels. Brisbane held 200 auctions but saw its clearance rate dip to 65.3%, its lowest since late December, while Adelaide’s clearance rate dropped sharply to 65.4% across 131 auctions, the city’s weakest early result since the first week of August last year. Elsewhere, Canberra returned a subdued 53.0% clearance rate from 89 auctions, Perth managed a 66.7% success rate from just 16 auctions, and Tasmania’s single scheduled auction was passed in.

Looking ahead, this shifting dynamic is set to be tested even further. Analysts point out that the volume of auctions is projected to climb dramatically this week, with over 4,000 homes currently scheduled to go under the hammer just prior to the Easter long weekend. Because the week leading up to Easter traditionally represents the seasonal high point for auction activity, this upcoming surge in listings will offer buyers unprecedented choice. For sellers, however, mounting supply paired with faltering clearance rates suggests that realistic pricing and standout marketing will be more crucial than ever in securing a successful result on auction day.