While the sold prior rate is down from last year, withdrawn auctions have been on the rise, reflecting seller jitters, Powell said.

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“They’re realising there isn’t the buyer depth for their home to be successful at auction and are opting to postpone or switch selling method,” she said.

Powell expected property prices to fall further, but noted the clearance rate would likely hold around 50 per cent, as sellers lowered price expectations to meet the market.

Commonwealth Bank head of Australian economics Gareth Aird, who forecast Sydney property prices to fall 18 per cent by the end of next year, felt the floor for clearance rates was not far off.

“Generally, they will hit a floor. A lot of people that are selling will see the market is falling and accept a price they may not have otherwise to get the job done,” he said.

However, it would not improve in the short term. Interest rate hikes had resulted in the clearance rate falling quickly, and it would remain lower until interest rates stopped rising.

Chances of auction success pulled back across the city, with the outer west and Blue Mountains, northern beaches, eastern suburbs and Sutherland region recording the largest year-on-year drop.

Auctioneer Damien Cooley, of Cooley Auctions, said it was a buyers’ market. Good quality properties were still selling well above reserve, but buyers were more tentative.

The group last month had an average of 3.1 bidders and about a quarter of its auctions had to start with a vendor bid as buyers were reluctant to make the first offer.

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Homes that failed to sell under the hammer typically traded in the days and sometimes hours afterwards.

“There’s hesitation from buyers because they can’t see right now where the floor in the interest rate cycle is ... the whole idea of rate rises is to shock the market and reduce spending, and that’s absolutely working in the property market,” he said.

Cooley said the clearance rate would also be affected by fewer quality homes hitting the market, and the pullback in buyer interest, over the quieter winter selling season. He suspected the market would be worse off in spring when more properties were listed for sale.

Ray White NSW chief auctioneer Alex Pattaro said the clearance rate had pulled back from the record heights of last year, but was still solid.

Buyers were wary on the auction floor and often wanted to see proof of interest from other parties before making an offer, due to concerns of overpaying, he said. While vendors were willing to meet the market, those expecting to get a bargain by holding back at auction and letting a property pass in would be disappointed.

“If properties aren’t selling at auction they’re selling relatively quickly afterwards, buyers are continuing to lurk around after auction,” he said.