Australian auction sales fall below half as buyer confidence weakens

Fewer than half of Australian homes put up for auction sold over the past week, reflecting a sharp loss of buyer confidence as borrowing costs rise and lenders become more cautious. The downturn matters because house prices have fallen across every capital city for the first time in 15 years, while economists say further declines may lie ahead.

Cotality recorded a national auction clearance rate of 48.4 per cent, down from more than 70 per cent in February; Sydney’s rate was 48.2 per cent, Melbourne’s 54.8 per cent and Brisbane’s 25.2 per cent. Domain reported prices fell a record 4.7 per cent nationally in the September quarter, including a 7.4 per cent drop in Perth, while the Reserve Bank has kept a November rate rise in play amid persistent inflation concerns.