Auction clearance rates

Presented without comment, RPData‘s auction clearance rates for week ending the 12th of February.

 

Latest posts by __ADAM__ (see all)

Comments

  1. RP Data seems to not be putting in the same effort, compared to last year, with their auction clearance rate reporting. So far, their reported rate has been down on last year, and they do not seem to be publicly releasing their results, outside of realestate.com.au – previously RP Data released a nice image showing the Australia-wide results on myrpdata.com.au. RP Data have also removed the 2011 auction clearance rates from their restructured website.

    For those in Sydney, the REINSW (like the oft quoted REIV) release their clearance rates every week at: http://www.realestateview.com.au/propertydata/auction-results/nsw/

    One caveat – REINSW do not include withdrawn in their clearance rates, like RP Data and APM do, so the REINSW results are slightly higher than they should be, but they are easy to recalculate. Like RP Data, REINSW’s results are for the week (not just the Saturday, like APM).

    Interestingly, so far this year the RP Data clearance rate for Sydney has been comparable to the (adjusted) REINSW clearance rate, despite the lower sample size. We’ll see if this continues once volume reaches a more statistically significant level.

  2. So. A failure rate of over 50% everywhere, except Melbourne, where there has probably been a rush of apartment vendors to the exit door. Those Melburnians, eh! Always ahead of the pack….

    • > Those Melburnians, eh! Always ahead of the pack….

      In the race to the bottom. They have to buy quickly while they still have jobs.

      • “They have to buy quickly while they still have jobs.”

        Our wonderful Premier Ted Baillieu is in the process of leading a crime-led recovery, building new jails and extra prison beds all over the state. It’s really the first announcement of substance he’s made since gaining office – apart from the competition to change the slogan on the number plates. I’m so proud to be living in a state with such a pro-active can-do leader…

        • He can probably save money by converting some of those student accommodations into prisons.
          .
          Most are sparse, concrete dog cells anyway and some of the former slumlords have the necessary skills to become abusive prison guards.

        • I think that you underestimate Ted. He also plans to release more land on the outskirts of Melbourne and build more residential towers in the CBD. It’s a proven business model of building houses and importing people. Building prisons is its logical extension. The larger the number of people, the more people in jail. If we have any spare prison cell capacity this may be the start of correctional service export.

  3. Does RPData still produce that nice table which included the total auctions as well as the reported auctions per state?

    They didn’t reported the unreported ones, but that number could easily be calculated as the difference between the two figures.

  4. Forrest GumpMEMBER

    There has been an ongoing issue with the “unreported” auction results. Most of which are failed sales or sales that are withdrawn from Auction at the last minute when the auctioneer discovers that only a few rubber-necks have come to watch the show. These un-reported failures would severly dint the current results above which omit these failed sales. Try googling “fudged auction results” and see what you get.

    Also have a read of this little gem.
    http://smh.domain.com.au/real-estate-news/its-time-to-clear-up-auction-confusion-20110418-1dk71.html

    And try this one on for size.
    http://www.news.com.au/money/auction-rates-fudged-by-failed-campaigns/story-e6frfmci-1226016477643

    • Forrest Gump,

      Grood articles. The govt should make it mandatory they report the results or if the agent doesnt report it then count it as not sold. Imagine the finance people not reporting on certain things they would go to jail.

  5. An auction on the Sunshine Coast was recently conducted in the RE office rather than at the auction. One office girl, who apparently hadn’t been at auctions, was heard to say to another “Gee it’s quiet isn’t it” The second replied “It’s always like this”

    No one even took a bidders card!

  6. thomickersMEMBER

    Just went to 2 auctions in Abbotsford in inner Melbourne. 2 passed in. one with no bids except a silly vendor bid for $820,000. Hope to see them get counted.

  7. Attended 2 auctions (office location) today in Port Douglas, both passed in.

    12 people plus 2 phone-ins attended. 6 of those where ring-ins and the other 6 where rubberneckers. Small town 🙂

    1st property had 2 bids but handed in at 352k. A 2007 price would have been roughly 550k-600k. Owner would have accepted 380k

    2nd property (mortgagee)had one bid and was handed in at 300k. 2007 price roughly would have been 550k. The bank would have accepted 350k.

  8. My neighbour here in Mosman was supposed to have an auction yesterday for 3 bed townhouse. I am assuming he is looking for about 1.4-1.6M for it.

    I turned up yesterday hoping to see an auction for the first time. Only saw about 2 couples inspecting. The agent approached me to say that they were “extending” the auction period to give people more time to scratch together a deposit. She then told me that the market was a bit cooler this Jan when compared to last, I wanted to say “No Sh!t” but just smiled and continued to listen.

    Even here in so called millionaires paradise of Mosman shops are closing and no one is buying property. check out the latest vid from mr propertybubble

    http://www.youtube.com/user/AussiePropertyBubble?v=I9L06x8hpNk

  9. As Ive said before, being in the Real Estate Industry the majority of agents don’t care about the auction clearance rates. When they have an auction and it doesn’t sell they don’t call around telling people it didn’t sell, same thing goes for if it sells. Its Saturday, they want to go home, the next days Sunday so they couldn’t care less about reporting the result of the auction.

    Rp Data will call around maybe over the next few weeks to see what happened with the result of the auction and agents will gladly tell them what the result was.

    People think that there is a registry where agents must submit auction results immediately as they happen. No such thing exists. If the REI created such a database then I’m sure agents would use it. As it stands now, for agents, there is really no where to submit auction results unless they are asked what the result was.

  10. Capital Appreciation

    Canberra’s clearance rate over the last couple of saturdays has averaged around 70% and the agents are crowing about the levels of interest in the Sunday Times. However, we are only talking about 25 auctions over the 2 saturdays so a very low number to draw much from. The auction prices do seem to be high too. It does seem like there is more interest than late last year. Canberra is a funny market and the auction clearance rate is quite volatile. I think there are lots of possible factors for the increased interest:
    1. People have waited since last year and the world doesn’t seem to be ending so are buying.
    2. Canberra has had an influx of people from overseas and interstate – quite normal for this time of year.
    3. People have looked at the quality and cost of rentals (which rose sharply late last year) and decided to bite the bullet.

    It will be interesting to see if this auction interest lasts. With around 3000 property listings (and still rising), there is certainly ample supply to soak up the demand. I expect the clearance rate to drop over the next month as the number of auctions rises.

    • The sad facts are that there is little else to do in Canberra, and also, while the PS is paying big safe salaries, it’s hard to see prices budging much. Yes, always an influx in Jan.

      • Capital Appreciation

        I don’t think things are quite so safe and secure with reduced budgets and Abbott’s axe potentially not far away.

  11. endrortsonhousing

    Capital Appreciation – who says the clearance rate in Canberra is around 70%???

    Certainly not RP data – 44% last weekend as per the above.

    As for the unashamed piece of real estate puffery in the Sunday Canberra Times, well I recall that it was just one real estate agent saying that they sold 70 percent of their houses (presumably a single digit figure) this weekend.

    There are only two reliable auction clearance rate indicators for Canberra IMO – RP Data and the Wednesday summary in the CT (last week the rate was around 40 or 50 percent from memory – certainly not 70!).

    The Sunday paper wrap up is just a collection of quotes from real estate agents.

    • Capital Appreciation

      Hi endrorts. I’m certainly not endorsing the Sunday Times in any way and especially not its weekly RE spruik. However, they do provide a near, if not, complete wrap of Saturday’s auctions. I’ve checked their reported sales and they do seem to be accurate as well as comprehensive. They missed 1 or 2 yesterday but that’s a lot better than RP data. The clearance rate provided by CB Richard Ellis in Thursday’s Canberra Times liftout is much more comprehensive and covers the mid week auctions as well. The 3 respective clearance rates (RP Data, CB RE and the Sunday Times) actually correlate quite closely and especially in the latter half of last year. See here for more details: http://www.canberrahouseprices.com/2012/02/act-queanbeyan-auction-clearance-rate-down/