Getting started in real estate

If you don’t already yet know, the results of the week’s auctions across the state are reported on REIV every Saturday evening

Here’s a snippet from the REIV website that I found immensely useful when it comes to making sense of auction results that are reported week in week out:

Clearance rates

Clearance rates are published for the properties sold at auction, providing an overview of the level of demand for property on offer on any given day. When looked at over a period of time, it can also be used as an indictor to understand the overall strength of the auction market.

For instance, the clearance rate this year is tracking at around 82 per cent. This represents a stable market, with reasonable level of underlying demand.

What makes up the clearance rate?

The clearance rate is a figure that includes properties that are sold before auction, sold at auction, and sold almost immediately after auction. To ensure transparency, the different segments of the clearance rate are also broken down and reported, as are the number of auctions where no result was received.

Sold before auction. Properties listed as sold before auction are those listed for sale then sold in the week preceding the scheduled auction date.

Sold at auction refers to properties sold on the day of the auction, either under the hammer or by later negotiation.

Private sale. Those listed as private sale refer to properties listed on the market that invite prospective purchasers to make an offer. This also includes properties passed in at auction and subsequently sold two or more days afterwards

Passed in. Properties listed as passed in failed to attract offers at a level the vendor was prepared to accept. These properties are often subsequently listed for private sale or withdrawn from the market.