Melbourne auctions have returned clearance rates below 50 per cent for four weeks straight.
Melbourne is just a fortnight away from its worst run of failed auctions since the Covid pandemic lockdowns.
Experts have warned homeowners will need to lower their price expectations to meet the market if the current slump continues, which could lead to a short-term hit to wider home values.
A total of 561 Melbourne residences are slated to go under the hammer this week, down 4 per cent from a year ago, along with 17 abodes in Victoria’s regional areas.
RELATED: Victorian home building drops to decade low, crisis fears worsen
Melbourne auction slump sparks desperate sellers to take risky bids
Olympian Lynden Hosking lists Mt Macedon home with private boxing ring
But despite limited choices, buyers have been told to considering purchasing ahead of spring when both prices and listing numbers are anticipated to rise.
Realestate.com.au data shows Melbourne last week logged its fourth straight week of the clearance rate coming in at either 46 or 47 per cent since June 7.
The last time the city recorded four weeks or more of clearance rates at or lower than 50 per cent was a six-week period from July to September 2021.
Victoria was in lockdown for most of that time, apart from a single eight-day period.
PropTrack economist Luc Redman says that lower clearance rates are likely to stick around during the winter period.
Melbourne’s median house value fell to $984,000 in June 2026.
REA.com.au economist Luc Redman said Melbourne would likely continue to have diminished clearance rates amid the traditionally quieter winter market.
“We’re potentially going to see, if this continues with this low level, more sellers needing to reprice their expectations to meet the buyers where they’re at – which, in turn, will probably see over the short-term a slight downturn in prices,” he said.
In June, Melbourne’s median house value fell to $984,000, lower than at the same time in 2025.
Mr Redman says that at the moment, some buyers are willing to wait for a property that they really want rather than simply try to get into the market. Picture: Ian Currie.
Mr Redman added that buyers had plenty of opportunity to secure a home in the current market.
“We’re heading into the thick of winter at the moment and we know that spring tends to be a time where a lot of that action kind of happens,” he said.
“We expect, because we still have a shortfall of supply, that properties are going to rebound in price – it might take a little bit longer than expected, but over the long-term they’re still going to grow.”
Victoria recorded a revised 47 per cent clearance rate last week, after a preliminary clearance rate of 52.6 per cent was initially reported on the weekend.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Aussie tea giant T2 launches ‘T2 Go’ concept stores
Ex-Essendon chairman David Evans secures Toorak pad
Top apprentice’s $3k selfless act prompts call to save tradies
English (US) · 