Australia's property market is talking out of both sides of its mouth. Auction clearance rates have bounced to a seven-week high, yet a new poll finds 61% of Australians want house prices to fall — including most homeowners.

The Bull Case

The auction market is finding a floor. Cotality's preliminary capital-city clearance rate jumped to 54.8% after three weeks in the sub-50% doldrums, with the previous week's final figure revised down...