Why does the smart real estate follower keep an eye on auction clearance rates?
Granted clearance rates vary from state to state and region to region. Naturally Gold Coast clearances can differ from Sydney and Melbourne quite considerably but they still tell a story.
Clearance rates are published each week advising the number of successful auctions sold that week against the number of properties auctioned.
When clearance rates are on the rise, as being currently experienced, there are several things we can conclude;
While when clearance rates are low it obviously reflects the opposite with prices down, higher stock levels, drop in buyer demand and general confidence is at low points.
This is only one indicator but if you are in real estate mode then it is certainly one of the indices you should be following.