Auction clearance rates easily highest in past three years
Auction clearance rates are much higher in 2013 than in 2011 and 2012, according to the latest RP Data report.
And the reason could be a better alignment of buyer and seller expectations, whereby vendors are more willing to meet the market price expectations of buyers than they were a year ago. And, also, with more buyers active in the market, there is now a heightened level of competition for stock.
The RP Data report found that, across all capital cities, auction clearance rates are hovering around their highest levels since May 2010. Throughout 2011 and 2012 combined capital city clearance rates never breached the 60% mark. But, so far in 2013, weekly capital city auction clearances have averaged 66.3%.
Despite this improvement, clearance rates remain below the levels of 2009 and early 2010.
‘’It is important to remember that auctions generally reflect the premium housing market and that less than 15% of the total capital city housing stock actually sells this way. Also, the number of properties auctioned is much higher in Sydney and Melbourne,’’ the report says.