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· Posted on
February 21, 2024

First homebuyers are rubbing their hands 'cos auction clearance rates are on the decline

The Aussie property market has been on fire lately. In fact, house values have been increasing at around $200 billion every month...

What's the key learning?

  • Australia's auction clearance rate is sitting at around 76.1%, down from 83.2% in the last weekend of October
  • With less properties clearing, experts reckon this is a sign that our red-hot property market may be cooling down
  • The auction clearance rate is the percentage of properties up for auction that actually sold on a particular week or month.

Background: The Aussie property market has been on fire lately. In fact, house values have been increasing at around $200 billion every month...and the average house price rose by $52,600 in the the three months to June. Ouch!

What happened: The auction clearance rate is sitting at around 76.1%, which is actually down from 83.2% in the last weekend of October - according to data from CoreLogic.

What else: So with less properties clearing...experts reckon this is a sign that the red-hot property market may be cooling down. But then again, they've said this before 🙄.

So what's the key learning?

💡The auction clearance rate is the percentage of properties up for auction that actually sold on a particular week or month.

Let's do the maths:

  • Clearance rate = Number of properties sold at auction / The total number of properties that went to auction that week.

💡 And property experts use the auction clearance rate as a proxy for the demand in the market.

💡When the auction clearance rate is high, it means there's strong buyer demand and an undersupply of available properties. When the auction clearance is low, it means there's weak buyer demand, and an oversupply of houses. So get ya deposits ready!

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