Auction results are an essential source of information when researching your next investment...
Just over the weekend there were 133 Total Scheduled Auctions, with an overall 89.01% Clearance rates
Understanding auction results is essential when you are searching your next investment.
Where do I find auction results?
Leading national property sales data provider Core Logic supplies loads of highly relevant information and results at www.realestate.com.au/sold, and also produces a weekly summary of capital city results. You can view state-based auction results on the following pages.
Why should I use auction results?
According to Core Logic Auction Market Specialist Robert Larocca, the sheer weight of numbers means that auctions can provide useful insights. Auctions can provide a rich source of information, she says. They account for around one in five sales in capital cities and rely on competition between buyers.
Buyers find auctions useful as they represent a reasonable proportion of sales and can provide statistically relevant information about the market. Auctions can provide a rich source of information.
What should I look for?
When you are reading the auction results, there are two separate sets of statistics that you need to look at.
In the capital city auction results, look at the following figures:
- overall clearance (sell) rate
- total number of auctions
- number of results reported
- number cleared (sold) and
- number uncleared (passed in and still on the market).
In the individual property results, look at:
- the sale price, if applicable, and
- whether the property sold under the hammer, was sold before or immediately after auction, or whether it was passed in and still for sale.
Larocca says it's particularly important to look at the sale price (or passed-in amount) for individual properties. Buyers will be able to compare the sale prices with their expectations of price, even if it is passed in. This information will help you make informed judgments about the market when bidding on the home you want.
How do I use auction results to build my buying strategy?
Buyers Agent Cate Bakos of Cate Bakos Property in Melbourne agrees that home buyers and investors can use auction results and auction clearance information to have a market advantage.
Having auction results data at your fingertips is important in a fast moving market, as buyers can take the sales data from one property and compare the result to their comparable property of interest, Bakos says. The auction clearance rate gives us some insight into the pace of the market, the demand for houses and/or units, and the likely strength of buyer competition at any given time.
For example, an auction clearance rate of 50% signals a buyers market whereas an auction clearance rate of 75% signals competition and demand will be strong.
Buyers can formulate a strategy based on market sentiment and the potential for competitive bidding, she says.
When they are armed with this information, in some cases, buyers can make an educated decision as to whether they will pursue a property with a compelling offer prior to auction, or take their chances and bid on the day.
Buyers and investors can use auction results to have a market advantage.
Contact us if you are thinking to invest in your next property.