<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The clearance rate at auctions last weekend tanked as wet </span><a href="https://www.9news.com.au/weather" rel="" target="_blank" title="weather"><span>weather</span></a><span> in major cities combined with rising interest rates kept buyers away.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Just 53 per cent of </span><a href="https://www.9news.com.au/housing" rel="" target="_blank" title="homes"><span>homes</span></a><span> on auction this weekend were sold, a 12 per cent drop from the same time last year, according to data from </span><a href="https://www.9news.com.au/domain" rel="" target="_blank" title="Domain"><span>Domain</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Clearance rate is calculated by dividing successful sales by the total number of reported auctions, including withdrawals and postponements.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>POLITICS:</span></strong><span> </span><a href="https://www.9news.com.au/national/teal-political-party-mps-confirm-conversations-around-unifying/ffc6110d-a01f-4dab-9741-9ce8a0921e69" rel="" target="_blank" title=""><strong><span>Teals say 'conversations' underway about new party</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There was a huge drop-off in </span><a href="https://www.9news.com.au/brisbane" rel="" target="_blank" title="Brisbane"><span>Brisbane</span></a><span>, with just 19 per cent of properties selling and no units being sold at auction.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/sydney" rel="" target="_blank" title="Sydney's"><span>Sydney's</span></a><span> clearance rate also sat at 53 per cent, having been at 68 per cent 12 months ago.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/adelaide" rel="" target="_blank" title="Adelaide"><span>Adelaide</span></a><span> was the only major city to buck the trend, its auction success rate sitting at 58 per cent over the weekend, a solid rise from 39 per cent.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/australia-auction-clearance-rate-wet-weather-interest-rates/7beacfd9-493a-4467-a44e-570920c66091" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Sydney was hit by wet weather all weekend, meaning punters were less inclined to venture out to auctions or open houses, with </span><a href="https://www.9news.com.au/melbourne" rel="" target="_blank" title="Melbourne"><span>Melbourne</span></a><span> also experiencing some rain.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-may-25-donald-trump-latest-world-news-headlines/d67ef258-4f90-43cb-8ab3-c229d074f404" rel="" target="_blank" title=""><strong><span>'Amateurs': Trump's cryptic post could doom peace deal</span></strong></a><span></span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It also shows three straight </span><a href="https://www.9news.com.au/interest-rates" rel="" target="_blank" title="interest rate"><span>interest rate</span></a><span> rises this year, off the back of rampant inflation and the </span><a href="https://www.9news.com.au/israel-iran-war" rel="" target="_blank" title="Middle East conflict"><span>Middle East conflict</span></a><span>, with buyers beginning to feel the pinch.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This time last year, the cash rate sat at 3.85 per cent, but dropped to 3.6 per cent by the end of the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It has shot up to 4.1 per cent, and experts fear more rises are on the way.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government has made changes to negative gearing, but they will not come into effect until July next year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h2><span>Australian house prices set for downturn</span></h2></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia's housing market is teetering on the edge of a significant downturn as the pressures of soaring interest rates and stretched affordability finally begin to erode buyer demand.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Following a sustained period of extraordinary growth that has bolstered household wealth across the country, new data suggests the tide is now turning, with the nation's largest capital cities already in the early stages of retreat.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The shift in market sentiment follows a grim month for mortgage holders, as the Reserve Bank of Australia (RBA) delivered its third interest rate hike of the year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://wwos.nine.com.au/nrl/andrew-abdo-quits-ceo-news-2026-tennis-australia-peter-vlandys-replacement/996cb4a4-4c83-4327-b21f-263ba5053075"><strong><span>NRL boss quits with huge tennis move imminent</span></strong></a><strong></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The 25-basis-point increase lifted the official cash rate to 4.25 per cent, effectively clawing back the relief Australians enjoyed from last year's rate cuts. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>And experts have warned the pain is likely to continue.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Bendigo Bank head of economic research David Robertson </span><a href="https://www.9news.com.au/national/interest-rates-australia-economist-grim-prediction/20e8a875-68d9-4b9e-aae1-df20465b6492" target="" title="yesterday suggested"><span>yesterday suggested</span></a><span> that the volatility stemming from the Middle East conflict is making further hikes all but inevitable.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Analysis from data provider Cotality, released today, confirms that the market is now reacting to this tightening cycle.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/man-charged-allegedly-spitting-police-officer-perth-airport/b29cb39e-9a28-4dd8-8701-06ea0b35a56c"><strong><span>Man charged after allegedly spitting on police officer at Perth Airport</span></strong></a><span> </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Cotality Research Director Tim Lawless noted that while Australia's combined capital city markets have navigated ten distinct downturns over the last four decades, the current softening is being driven by a combination of rising borrowing costs and waning consumer confidence. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Sydney and Melbourne are already five months into the early phases of decline, while growth is slowing across the mid-sized capitals," Lawless said. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Listings are picking up as demand softens, interest rates are rising while affordability and serviceability pressures are biting."</span></div></div>