Canberra's preliminary auction clearance rate has fallen to its lowest level in more than four years, suggesting buyers are in control of this year's spring market.
The ACT had 94 auctions on the weekend of November 9, with a preliminary clearance rate of 45.2 per cent, according to CoreLogic.
That is the lowest it has been since the early days of the pandemic in April 2020, when it fell below 45 per cent.
Ray White sale consultant and auctioneer Peter Walker said the low clearance rates were indicative of a market with buyer choice, where people were looking for long periods before buying.
"The market at the moment is like what farmers would call a green drought. On the surface, you have plenty of inquiry but when it comes to commitment, it is quite limited.
"People have a diminished sense of urgency because there is so much on the market," Mr Walker said.
He said buyers were waiting for their dream property or for interest rate cuts before purchasing, so did not have an appetite for auctions.
But this was a risky way of buying, he said.
"Any potential for increased borrowing capacity is going to be offset by increased choice. Fundamentally, research is about supply and demand," Mr Walker said.
CoreLogic executive research director Tim Lawless warned against waiting to make a purchase until interest rates are cut.
"Realistically, I don't think lower interest rates are going to make all that much difference to price growth or purchasing activity," he said.
"If we did start to see the housing market responding overly positively, you might find the credit rules are tightened up a little."
Clearance rates have trended under 60 per cent since August 2023, following highs above 90 per cent in 2022.
The numbers for last weekend are preliminary and Mr Lawless said the final count would be most important.
"It's really rare to see the preliminary clearance rate revise higher, but it is not unheard of," he said.
Mr Walker said many properties were passing in at auctions because sellers' price expectations were too high.
"Real estate is not homogenous," he said. "A three-bedroom home can have a variety of formations. One of the problems with the market is expectations being set as if [this is not the case]."
