The nifty fifty mark seems to be the new ordinary in Auction Clearance Rates.
This weekend gone saw a continuation of our late 50% range being normalised in this current market. With over 1,000 properties scheduled for Auction, it was no surprise for most of us that the Clearance Rate wasn’t some astonishing revelation.
Typically when we see an abundance of scheduled Auctions, this means an abundance of choice for buyers and with a skeptical and confused pool of buyers, there is no doubt we will see a lower percentage.
The issue lately has been, in my opinion, that buyers are hoping for a miraculous drop in vendor expectations, competition and ultimately, prices. Oft we see that the odd vendor will drop price, mostly due to death, divorce or downsizing (the 3 D’s) but unless this is the case, the market continues to storm forward like a steam train – shutting naive and procrastinating buyers out along the way.
It is not JUST the Auction Clearance Rates we should take into consideration when judging the property market but it is an indication of buyers sentiment. However, most things I have witnessed ‘pass in’ at Auction have sold within 7 days.
Of the 1,065 properties originally scheduled for Auction, 623 were reported to have taken place and 423 were reportedly sold – under the hammer.
This resulted in a Clearance Rate of 59% which is greater than a 50:50 chance of selling at Auction – which the media would have you believe.
Once again, the median sale price was up, this time at $1,200,000.
Thomas Merriman 