What is an Auction Clearance Rate?
An Auction clearance rate is the percentage of properties that are successfully sold over a particular week or month. This variable is calculated by dividing the number of properties that were sold by the total number of properties up for auction and multiplied by 100. For example, if ten properties went to auction and nine were sold the clearance rate for the week or month would be 90%.
Why are They Important?
Auction Clearance Rates can be useful for both vendors and buyers when navigating the property market, indicating the current market conditions.
High Clearance Rate
- Fewer properties on the market
- Growing property market
- Vendors market
- Strong buyer demand
Low Clearance Rate
- High volume of properties on the market
- Slowing property market
- Buyers market
- Weak buyer demand
Other variables that may affect clearance rates.
- The volume of properties up for auction.
- Vendors asking price.
- The number of bidders present.
- Interestest rates.
- Coinciding Auctions.
When predicting the property market, Clearance Rates can be a useful indicator of strength or weakness in the market. But it’s just one of many factors to consider and should be used alongside other market research and data.
If you want to know the value of your home, contact Clark Next Real Estate today.