Auction listings across Australia’s major capital cities have fallen nearly 20% year-on-year, signaling a deepening retreat from the public auction market as sellers grow wary of weak demand.

The sharp contraction in supply reflects a broader shift in strategy, with vendors either opting for private treaty sales to avoid the risk of a failed auction or postponing their plans to sell until market conditions improve.

The drop in listings comes as the national auction clearance rate has remained below 50% for nine consecutive weeks, a sustained period of underperformance that has eroded confidence among sellers and agents alike.

The drop in listings comes as the national auction clearance rate has remained below 50% for nine consecutive weeks, a sustained period of underperformance that has eroded confidence among sellers and agents alike.

In Sydney and Melbourne, clearance rates have hit their lowest levels in more than five years, underscoring a significant deterioration in residential property sentiment.

The combination of low clearance rates and shrinking supply suggests a market in transition, where the traditional auction model is losing its appeal.

Despite the broader weakness, some segments of the market remain active.