Auction clearances solid

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By Leith van Onselen

The Real Estate Institute of Victoria (REIV) yesterday released its preliminary auction results for the weekend just gone, which registered a small dip in the auction clearance rate and a high number of missing results.

The REIV reported a preliminary clearance rate of 69% on 884 auctions. This compares to last week’s final clearance rate of 72% from 939 auctions. This week’s result was also much stronger than the 61% clearance rate on 857 auctions recorded in the same weekend of last year and the 64% clearance rate on 994 auctions recorded on the same weekend in 2011.

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With only 71 auctions listed as “no result” by the REIV, the final clearance rate is likely to fall slightly once results are finalised on Wednesday evening.

The Real Estate Institute of New South Wales (REINSW) has also released auction results for the weekend, which registered a solid clearance rate of 69% on 322 auctions, with only 14 auctions listed as “no result”.

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The below chart and table from RP Data, which is current to 24 February 2013, shows the strong surge in clearance rates so far in 2013. As you can see, clearance rates in late February hit the highest level since mid-2010, driven by strong results in Melbourne:

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Next weekend, only around 200 auctions are expected in Victoria (due to the Labour Day public holiday) before volumes increased again with 890 auctions expected the following weekend and a whopping 1,140 on the weekend of 23/24 March.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.