As seen in The West Real Estate
The media has been full of stories about the marked decline in auction clearance rates. Last month it was widely reported that clearance rates had fallen below 50 per cent, a level not seen since COVID.
That sounds concerning. However, when you see stories like this it’s important to understand the context and the data.
Generally, they reflect conditions in the Sydney and Melbourne markets. Auctions are a very popular method of sale in these cities, with around 50 per cent of properties listed as auctions. There’s a good reason for that. When you buy a home by private treaty in New South Wales and Victoria, there is a cooling-off period. This doesn’t apply when you buy a home at auction. For sellers, auctions remove the risk of a buyer pulling out of a sale.
Changes in clearance rates, or in the number of auctions held, are relevant indicators of change for these markets, which average around 900-1,000 auctions per week.
WA is very different. We do not have a cooling-off period for private treaty sales. While auctions are a very good way to sell a property, there hasn’t been the same drive to sell by auction. According to REIWA data, auctions currently make up around 1 per cent of property listings. Based on Cotatily data for 2026, on average, less than 20 auctions are held in Perth each week. This is important to know when looking at the data.
In its auction reporting, Cotality notes results from Perth should be read with caution as the volume of auctions is too small.
For example, in the week it was reported clearance rates had plummeted to below pandemic levels, Perth had a clearance rate of 40 per cent. This was based on 16 auctions. Only five results were reported to Cotality, with two out of these clearing at auction. The week prior, 13 auctions were held for a clearance rate of 23 per cent.
These figures are not a reliable indicator of market performance.
It is definitely interesting to look at property news from around the country, but when you are serious about buying or selling, this auction clearance rates example highlights the need to get your information from those who are active in your market.
REIWA is the peak body for real estate in WA. We have access to data and insights not always available to other commentators. A lot of this information is freely available on our website, reiwa.com. If you want to know what is happening in WA markets, use reiwa.com as a starting point. For more information about conditions on the ground in a particular suburb, speak to a local REIWA agent.
Suzanne Brown
REIWA President
Originally published by The West Real Estate, see thewest.com.au. Access may require a subscription.
