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Normally, a sunny spring weekend in Melbourne would have been humming with house auctions across the city. But not this year. The number of properties listed on the weekend was the lowest for October since the pandemic flipped the property market on its head. It was also the first weekend under new state government laws cracking down on underquoting.

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00:02In the normally busy spring auction period, another sign that market confidence is going, going gone.
00:08This is when we see listing volumes really pick up.
00:11This year's totally different. We're in a different world, different landscape and volumes have taken a big dive.
00:17Around the country, the number of homes under the hammer has been sluggish for months
00:22as rising interest rates and changes to negative gearing and capital gains tax bite.
00:27And Melbourne leads the decline.
00:28The last time we saw a level of that at this time of year was all the way back in
00:33the pandemic.
00:34Just 500 homes were put up for auction last week, a 29% drop in volume week on week,
00:40more of a cliff when compared to the year on year figure.
00:43It coincided with new laws requiring vendors to publish their reserve prices
00:48in a bid to save home buyers losing time and money on properties they can't actually afford.
00:53Particularly young buyers, first home buyers that often have their hearts broken
00:57when they think they're in the game to buy the house but the reserve price wasn't what they expected.
01:03While clearance rates lifted slightly, it's too early to tell if that shows the laws working as intended.
01:09I think we probably need to see a consistent pick up in the clearance rate just to get a better
01:14handle on what's actually happening.
01:16Melbourne's property market had already been cooling for some time.
01:19It's hard to say whether the weekend slump was driven more by the new disclosure laws
01:24or by property investors facing diminishing returns who've decided not to sell.
01:28With any big change, it can take a little time to settle.
01:31With even fewer properties listed for auction this week,
01:34there will be time to ponder that question in the period to come.
01:38Going to assume,

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