The Sydney auction clearance rate was 59% on the weekend, its third week below 60% and the lowest level since February 2013. However, the number of listings was 1,080, a higher number than at the same time last year.

A total of 1,477 Melbourne properties were listed for auction on the weekend, showing that volumes there remain strong. The Melbourne clearance rate was 65%.

The number of properties sold at auction in Melbourne was 665, as opposed to only 287 in Sydney.

A total of 101 properties were withdrawn from auction in Sydney, suggesting sellers are less confident of achieving the high prices seen earlier in the year. While only 24 properties were withdrawn from auction in Melbourne on the weekend, 423 properties were passed in. Only 243 properties were passed in in Sydney.

Daniel Gillespie, Principal of Belle Property Bondi Junction, believes the Sydney property market is still strong, but returning to more sustainable levels. "We're seeing a correction," he said. "If the property is priced to the market, it will sell."