The Real Estate Institute of Victoria (REIV) yesterday released its preliminary auction results for the weekend just gone, which registered another solid result, with a preliminary clearance rate of 70% recorded on 437 auctions reported to the REIV. This compares to last week’s preliminary clearance rate of 69% from 204 auctions, which was later revised down to 67% once late results were chased-up. This week’s result was also much better than the 64% clearance rate on 303 auctions recorded in the same weekend of last year and the 63% clearance rate on 424 auctions recorded on the same weekend in 2011.
What is particularly encouraging about this week’s figures is that there are only five auctions listed as “no result” by the REIV, meaning that the reported 70% clearance rate is likely to stick.
In Friday’s post entitled “A confidence lift for housing?“, I showed the strong correlation between consumer confidence and house prices, and consumer confidence and dwelling approvals. It seems that this relationship also extends to the auction market, with rising consumer confidence typically reflected in improving auction clearance rates, as shown by the next REIV chart.
Auction volumes will continue to increase in Victoria, with 950 auctions scheduled next weekend and then 970 the following weekend.
Note: the Real Estate Institute of New South Wales is yet to provide their auction figures for the weekend just gone.
