Sales are being hit due to rising interest rates and banks tightening their lending to would-be purchasers.

Auction clearance rates in Sydney and Melbourne over the weekend were 51.7 per cent and 54.8 per cent respectively, according to Australian Property Monitors, with many vendors withdrawing their properties before they went under the hammer.

Sixty-one properties were withdrawn in Sydney, where 198 houses sold at auction - down from 247 last week.

In Melbourne 160 homes sold under the hammer, 100 fewer than the week before and far fewer than the 426 sold a fortnight ago.

In Melbourne, 331 homes were passed in at auction, indicating vendors' expectations weren't met on the day, according to Real Estate Institute of Australia president David Airey.

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