Over the weekend, Sydney managed a 56.4 per cent clearance rate compared with a final figure of 50.1 per cent last week while Melbourne managed 60.3 per cent compared with a final figure of 59.9 per cent last week.

Among the smaller auction markets, Canberra did best with 65.6 per cent, then Adelaide at 55 per cent and Brisbane at 37.9 per cent.

"It was tough out there today ... a lot of properties came very close to selling but just didn't quite get there, resulting in a 34 per cent clearance rate, but agents are working hard to get deals done post auction," said auctioneers Cooley Auctions.

'Fundamentally softer'

CoreLogic national auction market commentator Kevin Brogan told The Australian Financial Review the market was "fundamentally softer than this time last year" meaning the winter slowdown effect was more pronounced.

"Looking towards the spring selling season, we will be watching the market really closely to see if the current pattern continues throughout winter," Mr Brogan said.

"The energy that we saw when the auction market was running hot is not there. It's fairly subdued. The questions is whether there is going to be an impact when we come to the traditional spring selling season.


"There will be some headwinds. It's more difficult to get mortgage finance, that won't go away. This particularly affects the auction market because buyers need to be in a position to complete. With private treaty sales, these can be subject to finance so buyers have some wiggle room."

Despite the weak conditions, there were some pockets of strength, such as Geelong which managed an 82.1 per cent clearance rate and Ryde in Sydney at more than 70 per cent.

The two-bedroom property, at 18/47-55 Milson Road, drew two registered bidders who both participated. Belle Property Neutral Bay

"I don't think in Geelong they have heard the market is slowing," Mr Brogan said. "It just keep going quite strongly." As reported by AFR Weekend, Geelong has been the strongest performing regional market in the country over the past year, benefiting from its appealing lifestyle, reasonable commute to Melbourne and more affordable housing.

In Sydney, character-filled period homes in the right locations were still in demand, Mr Brogan said, pointing to the top result under the hammer this week being an 1880s terrace at 244 Moore Park Road, Paddington, which sold for $4.35 million.

In another example of stronger demand for good properties in the right location, a two-bedroom apartment at 47-55 Milson Road, Cremorne Point on the lower north shore, sold for $2.44 million, $190,000 above the reserve to local downsizers through Belle Property Neutral Bay.

"This property has some of the best views you'll find anywhere on the lower north shore," Belle Property's Matthew Smyth said. "The sale is a fantastic result that further emphasises that good-quality properties are still selling very well."

The slowing market didn't stop the sale of this apartment in Sydney's Elizabeth Bay for its reserve price of $2.15 million. Peter Rae SMH

CoreLogic figures also show that clearance rates have been higher for units than houses, given a $400,000 gap in median prices: $900,000 for units versus $1.3 million for houses.