Overreliance on auction data could undermine an investment strategy
When ignoring private treaty sales, post-auction negotiations and regional variations, a reliance on clearance rates give only a partial view of property market performance.
While auction clearance rates can provide a snapshot of certain aspects of the property market, they fall short as a comprehensive market indicator. (Image source: Shutterstock.com)
Spring is known as the selling season
in Australian real estate, and this is the time of the year where we get excited at seeing properties being fought over at auction.We’re seeing SOLD slapped across notice boards and the evening news using auction clearance rates as a primary indicator of Australia’s property market health, but relying on these rates to assess market activity can be misleading.
Auction clearance rates are not entirely negli…
