The winter auction market is typically subdued; however IPS is observing an extremely high level of consistent auction clearance rates. The monthly average clearance rate for July 2013 was a very strong 80% (compared to 60% for July 2012).
 
IPS has previously noted that the average monthly clearance rate is steadily rising. This can be seen as a function of an elevated number of buyers competing for increasingly scarce amount of stock. In strong auction locations (such as the Inner West and Inner-Eastern Suburbs) auction attendance is consistently up, resulting in more bidders, a higher price and more chance the vendor will achieve a sale.
 
With record low interest rates (and another rate cut tipped next week) we anticipate the clearance rate to remain high. The numbers of prospective buyers through open house inspections in our core areas has never been higher and as prices continue to increase, more and more purchasers are missing out.
 

20130731_Clearance_Rates_Graph

 

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