Understanding auction results is important when you are thinking about selling your home or investment property.
Auction results are a strong indicator of the current market conditions, and the clearance rate will provide a guide as to the strength, or weakness..
What is a Clearance Rate?
The Clearance Rate is the percentage of properties auctioned that week that actually sold. This figure is usually released late on Saturday.
What does a high clearance rate mean?
An auction clearance rate is considered to be high if it is 75-80% or above. It indicates that the market is strong and prices are rising. Demand is strong from buyers, and there also may be a shortage of properties on the market. It is considered to be a sellers market.
What does a low clearance rate mean?
Anything under about 60% is considered to be low. This indicates a slower market, weaker prices, possibly an oversupply of properties for sale. It is considered to be more a buyers’ market.