The housing market across the country heads into the 18 October auction weekend with confidence high after last week’s results confirmed strong demand despite a surge in listings.
The latest data shows 2,613 auctions held across the capitals in the week ending 11 October, a sharp 33 per cent rise from the previous week. Clearance rates held steady at 73 per cent, their highest in three weeks, suggesting buyers are still absorbing the spring rush of stock.
Melbourne led the country with 1,254 auctions and a clearance rate of 73.5 per cent, while Sydney followed with 1,003 auctions and 73.9 per cent cleared. Brisbane posted 68.5 per cent, Adelaide remained robust at 80.6 per cent, and Canberra sat at 61.5 per cent. Analysts see the combination of rising volumes and resilient clearances as a classic sign of a seller-leaning market heading into the busiest stretch of the season.
Prices continue to edge higher. Sydney’s median auction house price reached $1.878 million, nearly 20 per cent above last year’s level, while Melbourne’s hit $1.055 million, up 7.7 per cent. Across the capitals, home values rose 0.9 per cent in September and 4.6 per cent over the year. Even with higher borrowing costs, buyers are still competing hard for quality homes, particularly in well-located suburbs.
Rents have also re-accelerated as vacancies tighten again. The national vacancy rate fell to about 1.4 per cent in September, with rents up 0.5 per cent for the month and 1.4 per cent for the quarter, the strongest quarterly lift since mid-2024. Investors are re-entering the market as yields stabilise and rental conditions stay tight.
Vendor confidence is clear from asking-price data. Sydney sellers lifted their asking prices by 1.6 per cent over the month to an average of $2.11 million for houses, up almost 10 per cent year-on-year. Melbourne’s sellers are more cautious but still pushing higher. Total listings remain well below average, so A-grade properties—those with good light, land, and layout—continue to draw strong competition.
Days on market have lengthened slightly, but desirable homes are selling quickly and with minimal discounting. Buyers are selective, preferring family-friendly locations in Sydney’s north-west and Melbourne’s outer-east corridors, while fringe regions like Sydney’s Central Coast show signs of fatigue.
Interest rate expectations are adding to the sense of stability. Most major banks now expect one more cut in this cycle, while Westpac remains the only bank projecting three. Whether or not the Reserve Bank acts next month, the market already appears to be behaving as if the tightening phase is over.
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