Auction Market Hit Hard by Rate Hikes and Tax Changes

Auction markets across major capital cities, including Melbourne and Sydney, are showing weak clearance rates, with combined capital cities staying below 50% for two consecutive weekends. This reflects the impact of the latest RBA rate hike and federal budget changes to negative gearing and capital gains tax.

In Melbourne's western growth corridor, low auction clearance rates indicate increased buyer caution and negotiation power. Sellers should prepare for longer selling periods and potentially adjust pricing strategies to attract buyers in a less buoyant market.