An auction clearance rate below 60% can point to softer competition, however it cannot tell you what a particular home is worth or make the decision for you.
Audience: owner-occupiers, first home buyers and upgraders
Category: Buyer Education
Quick Answer
When Melbourne auction clearance rates stay below 60%, conditions may be leaning more in the property buyers’ favour. That can mean more room for negotiation in some cases. It does not mean every property is a bargain or that you should change a well-researched walk-away price. [1]
Why does 60% keep appearing in discussions about Melbourne auction clearance rates?
It is a widely used industry reference point, not an official rule. Domain describes a clearance rate of about 60% as a balanced market between buyers and sellers. That makes it a useful prompt to investigate buyer demand and price expectations, but not a shortcut to deciding what a particular home is worth. [1]
On 3 August 2026, Domain reported a preliminary Melbourne clearance rate of 55% for 26 July to 1 August, based on 429 reported auctions. Its page labels the result preliminary. [2]
The useful question is: does this market signal impact the home you are looking at, or the research behind the price you are comfortable paying?
Before You Read Further
This article provides general information for Victorian property buyers. Market data changes and providers use different methods. Property value, contract terms, finance and auction decisions depend on the particular property and buyer. Obtain appropriate independent professional advice before making a purchase decision.
CHECK POINT
Will a lower auction clearance rate actually change how you buy?
- Do you know whether homes like the one you are considering are attracting less competition, or are you hoping the city-wide clearance rate will impact you?
- If the home you want passes in, do you know what to do next, what you are prepared to offer, and when you would walk away?
- Have you checked what similar homes have sold for, so you know whether the asking price makes sense?
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Why 60% is a reference point, not a rule
An auction clearance rate measures the share of auction results recorded as sold under a provider’s methodology. The result changes depending on whether the provider counts sales before or after auction, withdrawals and late-reported outcomes. [9][10]
That is why 60% is best treated as a directional shorthand. A sustained rate below it can be consistent with a wider gap between what buyers will pay and what owners expect. It cannot establish the value of a single property or tell you whether a specific auction will have little competition. [1][11]
Why clearance rates can differ so much
Different data providers collect and classify auction outcomes in different ways. They may treat sales before auction, homes that sell after a pass-in, withdrawals and late-reported results differently. That is why the same Melbourne market can produce very different clearance rates. [9][10]
For example, Domain counts sales under the hammer and before auction as cleared, and includes withdrawals in its reported total. Cotality updates its results as more outcomes are received and counts sales before, at and after auction as cleared, while passed-in and withdrawn results are treated as uncleared known outcomes. [9][10]
The practical point is to be clear about which provider’s clearance rate you are relying on, then follow that provider over time. That lets you compare like with like and see whether buyer competition is strengthening or easing, instead of being thrown off by different weekly headlines.
Melbourne auction results are still below 60%, but the trend is improving
The table below uses Cotality’s final Melbourne results only. It is a BWE compilation of provider-published weekly figures. [3][4][5][6][7][8]
| Week ending | Auctions | Final clearance rate |
|---|---|---|
| 21 June 2026 | 923 | 43.6% |
| 28 June 2026 | 807 | 46.6% |
| 5 July 2026 | 583 | 49.6% |
| 12 July 2026 | 576 | 50.3% |
| 19 July 2026 | 599 | 50.6% |
| 26 July 2026 | 710 | 51.7%% |
All six results were below 60%. The simple average was 48.7%, calculated by BWE from the six published rates. The rate rose 8.1 percentage points between the first and final observations. [3][4][5][6][7][8]
The Takeawy
Buyer competition was softer than usual, which can create more room to negotiate, especially after an auction pass-in or where buyer interest is limited. But the six-week improvement means you should not assume every owner will accept a discount. Use the result as context, then assess the individual home. [1][11]
What the clearance rate cannot tell you
A city-wide clearance rate cannot tell you whether the home you want is good value. It will not show whether the quote is realistic, how many genuine buyers are in the mix, whether the owner will meet the market, or whether there are issues in the building, contract, planning or owners corporation.
That is why the clearance rate is only one piece of the picture. Use it to set your expectations for the auction, then look at what similar homes have sold for, take a proper look at the property and set a price limit that works for your household.
NEXT STEPS
Talk to Eliza about the home you are considering
A clearance rate can help you understand the broader market, but it cannot tell you what to pay for a particular home or how best to approach the auction. Eliza can give you independent professional input on the property, your pricing research and the buying strategy that makes sense for you.
How to use the clearance rate when you are buying a property
Follow one source, not every headline
Pick one reliable provider and watch the results over a few weeks. You are looking for direction: are conditions getting easier, harder or holding steady? Look at the number of reported auctions too, not just the clearance rate. [9][10]
Use it to shape your approach, not set your price
Softer auction results may give you more time to ask questions, negotiate after an auction pass-in or hold your ground on price. They do not make a well-located home with several interested buyers cheaper. Let the property and the competition in front of you guide your approach.
Do your homework before auction day
Look at what similar homes have actually sold for. Make sure you understand the condition of the home and what you are signing up for, then decide the most you are comfortable paying. If the price feels too high, let it go. If it feels right, bid or negotiate with a clear head rather than being swayed by weekly headlines.
Know what you will do if it passes in
In Victoria, the highest bidder has the first opportunity to negotiate after a pass-in. Before the auction, decide your opening position, preferred terms and absolute limit. If no agreement is reached, the property may then be offered to other buyers or sold privately. [12]
Does a low clearance rate mean you should wait?
Not necessarily. A lower clearance rate is a reason to look more closely, not a reason to automatically wait. If you have found a home that suits your needs, the question is whether you have done your pricing research and understand the risks. [1][11]
Look at what similar homes have actually sold for. Make sure you understand the condition of the home and what you are signing up for, then decide the most you are comfortable paying. If the price feels too high, let it go. If it feels right, bid or negotiate with a clear head rather than being swayed by a weekly headline.
NEED CLARITY?
Want a truly independent view on your next move?
Clearance rates are a useful starting point, but they cannot tell you whether a particular home is right for you or what you should pay. Buy With Eliza gives buyers truly independent advice.
Whether you are buying your first home, moving to your next one or weighing up a particular property, book a call with Eliza for clear, independent guidance tailored to your situation.
Frequently Asked Questions
Questions buyers are asking about the clearance rate
sources
Reference material used in this article
- Domain, Where Melbourne house prices are under the most downward pressure, 23 November 2024, accessed 3 August 2026.
- Domain, Melbourne Auction Results: 26 July to 1 August 2026, updated 3 August 2026, accessed 3 August 2026.
- Cotality, Finalised clearance rates and auction market preview: week ending 21 June 2026, accessed 3 August 2026.
- Cotality, Final Clearance Rates: week ending 28 June 2026, published 2 July 2026.
- Cotality, Final Clearance Rates: week ending 5 July 2026, published 9 July 2026.
- Cotality, Final Clearance Rates: week ending 12 July 2026, published 16 July 2026.
- Cotality, Final Clearance Rates: week ending 19 July 2026, published 22 July 2026.
- Cotality, Final Clearance Rates: week ending 26 July 2026, published 30 July 2026.
- Domain Research, How are auction clearance rates calculated?, accessed 3 August 2026.
- Cotality, Auction Results methodology, accessed 3 August 2026.
- Domain, Auction clearance rates expected to fall below 2022 downturn levels, 29 May 2026.
- Consumer Affairs Victoria, Buying property at auction, accessed 3 August 2026.
