Auction clearance rates in Sydney and Melbourne remain steady as the spring selling season approaches, with experts predicting that an influx of listings could challenge the ongoing housing recovery. Nationally, 71.4% of homes listed for auction found buyers last week, with Sydney’s clearance rate at 74.9% and Melbourne’s at 68.7%, according to CoreLogic.

The traditional spring selling season is kicking off with over 2,000 auctions held each week recently and 2,300 scheduled for the coming week. “With the flow of fresh listings trending higher, the depth of market demand will be tested over the coming weeks and months,” said Tim Lawless, CoreLogic’s research director.

Louis Christopher, founder of SQM Research, added, “It’s likely auction clearance rates are going to fall from here in Sydney and Melbourne. That’s going to then equate to price falls in both cities for the remainder of the year.” Despite these predictions, some sellers still exceed reserves, reflecting strong interest in top-tier properties, while other market segments remain cooler.