Auction Volumes Surge 29% as Clearance Rates Hold Above 70%

Auction season is in full swing, and the numbers tell a clear story: buyer demand remains strong despite the February rate hike. Last week, 2,051 properties went to auction across the combined capitals — a 29.5% jump from the prior week and 7.6% higher than the same week a year ago. Preliminary clearance rates held above 70%, a level that typically indicates a seller-friendly market. With more than 2,800 auctions scheduled for this coming week, the pace is only accelerating.

This Week's Auction Results

What Do Clearance Rates Actually Tell Us?

The clearance rate is the percentage of properties that sell at or before auction. It's one of the most reliable real-time indicators of market sentiment:

At 70.7% combined, the current market sits firmly in the "balanced-strong" zone. Adelaide (78.9%) and Perth (83.3%) are in clearly hot territory, consistent with the two-speed market pattern we're seeing in price data. Sydney and Melbourne are competitive but not overheated, which is actually healthy for buyers who do their homework.

Why Volumes Are Rising Despite the Rate Hike

It might seem counterintuitive that auction activity is ramping up after the RBA raised rates to 3.85%. Several factors explain it:

• Seasonal ramp-up: February-March is traditionally peak auction season as the year begins in earnest. Vendors who listed over summer are now going to auction.
• Pre-approved buyers still active: Most buyers who were pre-approved before the rate hike still have valid approvals. The buffer rate already factored in higher rates.
• Fear of further hikes: With CBA, Westpac, and NAB predicting a May hike to 4.10%, some buyers are motivated to transact now before borrowing power shrinks further.
• Limited stock elsewhere: New listings are 5% below last year and 9.2% below the five-year average. Auctions are one of the few ways to access quality stock in a tight market.

What to Expect in Coming Weeks

More than 2,800 auctions are scheduled for next week — a significant further increase. As we move into the heart of autumn auction season (March-April), volumes typically peak before tapering off into winter. Key things to watch:

Tips for Buying at Auction in This Market

With clearance rates above 70%, you're more likely to face competition. Here's how to give yourself the best chance:

1. Get pre-approved first: Auction purchases are unconditional. You need to know your exact budget before bidding, not a rough estimate. Avoid these 8 pre-approval mistakes.
2. Set a firm ceiling: Decide your maximum bid before auction day and don't exceed it. Emotional bidding in a competitive market is where buyers overpay.
3. Attend other auctions first: Watch 3-4 auctions in your target area before bidding on one. You'll learn the pace, the competition level, and the typical gap between guide and sold price.
4. Consider off-market: In a tight market, not every property goes to auction. A broker or buyer's agent with good contacts can sometimes access properties before they hit the open market.
5. Don't wait for a crash: At 70%+ clearance rates and rising volumes, there's no sign of a market correction. Every major forecaster predicts prices to keep rising in 2026.

The Bottom Line

The auction data confirms what price indicators have been showing: the rate hike has not killed buyer demand. With 2,051 auctions this week, 2,800+ scheduled next week, and clearance rates holding above 70%, the market is entering peak season with genuine momentum. Buyers who are ready and pre-approved are in the strongest position to act — those who wait may face higher prices and less choice as the season heats up.

Sources: CoreLogic/Cotality; PropertyUpdate; SQM Research