Melbourne's auction market remained firmly in buyers' favour over the past week, with a preliminary clearance rate of just 49 per cent for the week of 28 June to 4 July — down sharply from 72 per cent at the same time a year ago, Domain's figures show.
Of 582 auctions scheduled across the city, 491 were reported and 240 sold, at a median price of $850,000. A clearance rate below the halfway mark points to a market where more homes are passing in or selling after auction than being snapped up under the hammer — the opposite of the frenzied conditions of recent boom years.
By convention, a clearance rate above 70 per cent is generally taken as the marker of a strong seller's market. Melbourne is well short of that: market analysts note that clearance rates remain well below the 70-per-cent-plus levels usually linked to robust seller's conditions, with owner-occupiers — rather than investors — now dominating many Melbourne auction campaigns.
The softness is not confined to the auction room. Across the wider market, recent value data puts Melbourne's median house value at about $948,000, with values easing over the past month and quarter. In other words, the cooling seen at Saturday auctions is showing up in citywide price measures too.
For buyers, the shift changes the maths. With fewer bidders competing and more properties available, there is more room to negotiate and less pressure to commit at the first inspection. For sellers, the message from agents is consistent: realistic pricing, patience and a willingness to meet the market are increasingly the difference between a sale and a pass-in.
Whether the softness deepens or steadies through the rest of the year is the open question, but for now Melbourne's numbers tell a clear story — a market that has swung, at least for the moment, back towards those doing the buying.
