Auctions crash to send house prices lower

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By Leith van Onselen

Some readers underplay reported auction clearance rates as a meaningful indicator for house prices because they are reported on a voluntary basis and tend to exclude a large number of results.

The below charts, which plot trend auction clearance rates against dwelling values growth, show why this view is misguided. As illustrated below, the reported auction clearance rate is highly concentrated with dwelling value growth nationally:

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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.