<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Fewer than half of the homes listed for auction in </span><a href="https://www.9news.com.au/sydney" rel="" target="" title="Sydney"><span>Sydney</span></a><span> sold over the weekend - the lowest rate since the early days of the </span><a href="https://www.9news.com.au/coronavirus" rel="" target="" title="COVID-19 pandemic"><span>COVID-19 pandemic</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Last Saturday's auctions marked the first test of the market since the federal government announced an overhaul of negative gearing and Capital Gains Tax (CGT) last Tuesday.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Interest rate hikes and rising inflation have </span><a href="https://www.9news.com.au/national/australian-house-prices-set-for-downturn-as-rate-hikes-bite/0da3c2c9-4128-40a9-9245-e880a89a2a07" rel="" target="" title="brought about a softening in Sydney's housing market"><span>brought about a softening in Sydney's housing market</span></a><span> for several months now, bringing it to the edge of a significant downturn, but Saturday saw clearance rates plummet a further six per cent.</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>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/negative-gearing-loophole-for-millions-of-owner-occupiers-could-discourage-selling/f5adfe31-3500-474b-a6e7-8d50a4023a79" rel="" target="" title="'Loophole' to allow millions to negatively gear after July 2027"><strong><span>'Loophole' to allow millions to negatively gear after July 2027</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Even with just 616 homes going up for auction in Sydney on Saturday - almost 15 per cent fewer than the previous week - the clearance rate dropped to 49.2 per cent, according to Cotality data.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>That is Sydney's lowest clearance rate since auctions were heavily disrupted by COVID-19 in April 2020.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It was a different story elsewhere across the country, though, with </span><a href="https://www.9news.com.au/melbourne" rel="" target="" title="Melbourne"><span>Melbourne</span></a><span>, </span><a href="https://www.9news.com.au/brisbane" rel="" target="" title="Brisbane"><span>Brisbane</span></a><span>, </span><a href="https://www.9news.com.au/adelaide" rel="" target="" title="Adelaide"><span>Adelaide</span></a><span> and Canberra all seeing modest rises in clearance rates.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/sydney-real-estate-auction-clearance-rate-plummets-to-covid-pandemic-2020-levels/5395ee85-700d-4f96-9fb2-6e676af68c37" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Nationally, auction clearance rates crept up by 1.1 per cent to 57.5 per cent - the fifth time in the last seven weeks national clearance rates had held below the 60 per cent mark.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In Melbourne, 906 homes went to market and just over 61 per cent sold - an uptick of 3.7 per cent from the week before.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Perth had the lowest number of successful auctions out of all the capitals, with just 39 per cent of its auctions resulting in a sale.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Perth has seen astronomical gains in property prices in recent years, with home values soaring by 27 per cent in the last 12 months alone.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The federal government's tax changes announced as part of budget measures last Tuesday include the winding back of negative gearing - a move expected to spook property investors.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/czarina-tumaliuan-murder-melbourne-mother/881fb3e4-5384-4102-8c7e-0253b8acb6ed" rel="" target="" title="Mother's 'life sentence' after daughter's brutal murder by husband"><strong><span>Mother's 'life sentence' after daughter's brutal murder by husband</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Even before this, Australia's housing market appeared to be on the cusp of a downturn.</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," noted Cotality Research Director Tim Lawless</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><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" rel="" target="_blank" title=""><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>