01 August 2011
According to the REIV, this week’s clearance rate again failed to reach 60%. Of the 543 properties up for auction on the weekend, 315 of those sold and 228 were passed in representing a clearance rate of 58%. Of the 315 properties that sold, 63 of those (or 20%) sold prior to auction. The average clearance rate for the year to date remains at 59%. At same time last year, the clearance rate was 69% and the average year to date clearance rate was a very strong 77%.
The NPB clearance rate for the week was 64%, with 24 of the 37 properties we reviewed being purchased. The NPB clearance rate last week was 69%. The lower end of the market performed the best on the weekend with a clearance rate of 72%, with 8 of the 11 properties going to auction selling. The middle range category ($600k-1m) had a similar clearance rate of 71%, with 10 of the 14 properties selling and the high end struggled with a clearance rate of 50%, with only 6 of the 12 properties we reviewed selling. If you exclude the high end of the market, the NPB clearance rate for properties under $1m would be a very healthy 72%.
Auctions in the Spotlight
There are goods crowds gathering at the good properties in the inner city and those properties are selling well, indicating buyers are still happy to pay for good quality and well positioned real estate. It is important to note that good property sells well in almost any market. Property selection and the appropriate research is paramount in the current environment. The number of properties going to auction is expected to increase over the next few weeks as the spring season approaches, and it will be very interesting to see how the market performs with an increase in stock.
If you need any help with searching, assessing or negotiating your next property purchase or simply wish to discuss your property buying needs, please don’t hesitate to contact me.
National Property Buyers
0418 131 950