Auction clearance rates serve as the market’s real-time pulse, revealing the balance between buyer demand and vendor pricing ambition in Sydney’s competitive property landscape. However, these headline figures require careful interpretation to inform genuine buying decisions rather than trigger emotional responses.
At Buyer’s Domain, as specialist buyers’ agents in Sydney’s Inner West, we dissect clearance data alongside transaction pricing, vendor motivation, and micro-market trends to guide clients through optimal acquisition timing.
Defining Auction Clearance Rates
The clearance rate represents the percentage of scheduled auctions that result in a sale on the day, calculated as:
Properties sold at auction divided by properties went to auction times 100
CoreLogic and Domain publish weekly preliminary rates (reported within 48 hours) and finalised rates (after pass‑ins convert to private sales). Sydney’s preliminary clearance for the week ending 18 January 2026 recorded 42.1% from 19 Saturday auctions, reflecting seasonally low summer volumes.
What Clearance Rates Reveal (and Conceal)
High Clearance Rates (>70%)
Signals:
- Strong buyer competition.
- Vendors pricing realistically relative to market.
- FOMO (fear of missing out) active.
Sydney Context: 2025 peaked at 83.3% (Ray White data), coinciding with interest rate cuts and spring selling momentum.
Moderate Rates (55–70%)
Balanced market:
- Sufficient buyer interest but pricing discipline required.
- Optimal buying window for prepared purchasers.
Low Rates (<55%)
Buyer’s market signals:
- Vendor overpricing or insufficient genuine offers.
- Negotiation opportunities post‑auction.
January 2026 Context: 42.1% reflects post‑holiday caution, high vendor numbers, and buyer selectivity rather than fundamental weakness.
Beyond the Headline Number: Critical Context
Clearance rates alone mislead without these qualifiers:
Volume Matters
Low volume distorts percentages:
- 10 auctions, 7 sold = 70% (looks strong).
- 200 auctions, 120 sold = 60% (more reliable).
Sydney scheduled 7,802 auctions in 2025 (83.3% clearance); January 2026 volumes remain depressed.
Preliminary vs Finalised Rates
Preliminary rates understate true demand:
- Pass‑ins often sell privately within 7–14 days (60–70% conversion).
- Finalised rates typically 5–10 points higher.
Property Type Segmentation
Houses outperform units:
- Family homes: 65–75% clearance.
- Apartments: 50–60% (higher supply).
Sub-Market Variations
Sydney micro-markets diverge and you might notice the following patterns:
| Suburb Group | Typical Clearance | Driver |
| North Shore | 70–80% | Affluent demand |
| Inner West | 60–70% | Lifestyle appeal |
| Western Sydney | 50–65% | Affordability constraint |
| South West | 45–60% | Investor selectivity |
Interpreting January 2026 Data
Week ending 18 January 2026 (SQM Research):
- Sydney Saturday: 42.1% clearance (19 auctions).
- Notable sales: Cronulla unit, Epping villa, Quakers Hill townhouse.
- High reschedules (7/19) indicate vendor pricing tests early in the year.
Context:
- Post‑holiday vendor surge meets buyer caution.
- Preliminary rate; expect upward revision as pass‑ins convert.
- Consistent with seasonal pattern (January typically 40–50%).
Advanced Metrics: Beyond Clearance Rates
In addition to auction clearance rates, sophisticated buyers also track these alongside headline figures:
Days on Market (DOM)
- <30 days: Seller’s market.
- 30–60 days: Balanced.
- >90 days: Buyer opportunities.
Vendor Discounting
Percentage below initial asking price:
- 0–2%: Strong demand.
- 5–10%: Negotiation normal.
- >15%: Pricing distress.
Pass-In Conversion
Percentage of pass‑ins sold privately:
- >70%: Healthy underlying demand.
- <50%: Vendor overpricing.
Auction Volume Trends
Rising volumes + stable clearance = sustainable growth.
Falling volumes + high clearance = supply constraint.
Strategic Implications for Sydney Buyers
Timing Your Entry
- Current Environment (January 2026): 42% clearance + low volume = buyer opportunity window. Act before autumn listings accelerate.
- Spring Transition: Monitor for 65%+ sustained clearance signaling renewed competition.
Suburb Selection
Prioritise:
- Stable clearance (60–70%) over boom/bust cycles.
- Micro‑markets outperforming city average (North Shore, Inner West).
Auction Preparation
- Pre‑auction offers: 5–10% below reserve for motivated vendors.
- Pass‑in strategy: Immediate private negotiation.
- Proxy bidding: Authorise trusted representation.
How We, as Buyers’ Agents, Leverage Clearance Intelligence
At Buyer’s Domain, auction clearance rate analysis forms one of the foundations of our market assessments:
- Real‑time tracking: Weekly suburb‑level dissection.
- Vendor motivation profiling: Identify pricing flexibility pre‑auction.
- Proxy representation: Execute strategy at auction without emotional interference.
- Post‑auction pursuit: Convert 70%+ of pass‑ins to private purchases.
Recent results: Secured three Inner West properties at 8–12% below reserve during 55% clearance periods.
Common Misinterpretations to Avoid
- Panic at lows: Seasonal softness (January) masks underlying strength.
- Ignoring segmentation: Citywide 60% may conceal 75% house/45% unit divergence or alternatively regional variation.
- Volume blindness: Single‑week spikes lack statistical validity.
2026 Sydney Outlook
AMP forecasts 5–7% price growth driven by rate cuts and undersupply.
Clearance trajectory:
- Q1 2026: 55–65% (post‑holiday recovery).
- Autumn peak: 70–75%.
- Spring momentum: 75–80% if rates ease further.
Conclusion: Data‑Driven Decisions Trump Headline Reaction
Auction clearance rates illuminate market temperature but demand contextual interpretation. Sydney buyers who dissect volume, property type, suburb trends, and underlying metrics gain decisive advantage over those reacting to weekly headlines.
In the current 42% auction clearance rate environment, strategic opportunities abound for prepared purchasers. Advance your interests with specialist guidance.
To harness clearance intelligence for your Sydney property acquisition, connect with our team of experienced buyers’ agents.
