The auction clearance rate slid further over the weekend in Sydney, down to 80 percent, the lowest rate for a weekend not affected by holidays this year. The decline in the clearance rate, combined with the surprise drop in home loans recorded last month, are early signs that the rapid pace of price increases in Sydney might be slowing. 

Sydney has now overtaken Melbourne as the auction capital of Australia, with more than 600 Sydney homes auctioned over the weekend compared to 560 in Melbourne. More than 700 homes are scheduled for auction in Sydney on the last weekend in July, a huge number for winter.

Melbourne had a preliminary clearance rate of 79 percent on Saturday, higher than the 75 percent of the week before.

Brisbane's weekend clearance rate was 52 percent and Adelaide's was 68 percent, unchanged from the previous week. The national auction clearance rate was 78 percent, according to Fairfax's APM.