November newsletter
Hammer falls at 70 per cent of auctions
Posted on Wednesday, October 28 2009 at 9:00 AM
Property auctions have recorded a success rate higher than 70 per cent over a period of more than three months, according to RP Data research.
RP Data national research director Tim Lawless says auction volumes have ramped up in spring, but auction clearance rates have been solid for some time.
The national weighted average was above 70 per cent for the 15 weeks to October 23, Lawless says.
“When clearance rates are high we can assume that there is a healthy level of optimism amongst buyers and that vendor expectations about the value of their property is aligned with buyer expectations,” he notes.
“On the flip side, when clearance rates are low, this infers that homebuyers are more cautious and vendor expectations may not be aligned with market conditions.”
Melbourne and Sydney are Australia’s auction capitals, collectively hosting 85 per cent of the nation’s auctions each week.
Auctions as a method of sale are most popular in Melbourne, where 29 per cent of homes advertised for sale are auction listings, RP Data says.
This represents more than double the national average of 14 per cent.
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