Australia’s housing market has suffered a major setback, with auction clearance rates falling to their lowest level in six years as buyers increasingly walk away from property deals.

Preliminary data shows the combined capital-city clearance rate has dropped to around 47.4 per cent, a sharp decline from recent months and well below last year’s levels.

Sydney and Melbourne, the nation’s two largest property markets, recorded some of their weakest auction results since the early COVID-19 period.

Experts say rising interest rates, affordability pressures, and ongoing economic uncertainty have made buyers more cautious.

A growing number of auctions are being withdrawn or failing to meet reserve prices as sellers struggle to attract competitive bidding.

Analysts believe the market could remain subdued until borrowing costs ease and consumer confidence improves.