The Australian property market has been experiencing a slowdown in recent months, despite high clearance rates at auctions.

According to recent data, the clearance rate has remained above 70% in many areas, indicating strong demand and competition among buyers. However, the number of properties being listed for sale has decreased, and the pace of price growth has slowed.

This mixed trend suggests a market in transition, with some areas experiencing a slowdown while others remain strong. Factors contributing to the slowdown include:

1. Interest rate rises: The Reserve Bank of Australia has increased interest rates to combat inflation, making borrowing more expensive and reducing demand.
2. Affordability constraints: Price growth has outpaced wage increases, making it difficult for some buyers to enter the market.
3. Economic uncertainty: Global economic headwinds and domestic political uncertainty may be contributing to a more cautious approach from buyers.

Some of possible reasons why the number of properties sold at auction in Melbourne is decreasing:

– There was a decrease in the volume of homes being taken to auction.
– The demand of people attending auctions is not being matched by the volume of homes being taken to auction.
– Tighter lending conditions are putting the squeeze on homebuyer finances.
– Vendors are quite selective of what properties they take to auction.
– The number of people per household has declined, leading to a rise in rents at a time of a general high cost of living, and this has led to people moving into a group house or moving back home, thus reducing demand.