The Truth About Auction Results

Auction clearance rates are misleading and do not reflect the true clearance rate.  Every week domain will publish results on a Saturday afternoon, and they will be revised down again next week.  BUT…..This revised down percentage is also misleading.

WHY….Look at the table below.  Before we do this let’s look at the definition in the English dictionary……

A public sale in which goods or property are sold to the highest bidder.

Now we have that out of the way let’s have a closer look at the table……

Allegedly 303 Auctions were held in Sydney, Corelogic results are 216 now that’s a massive difference.  Core then reports that 65 of these properties sold BEFORE Auction (remember the definition of an auction).  110 reported as sold on the day, 1 sold after the auction, 21 passed in (did not meet the reserve price) and 19 were reported as withdrawn from sale.  The reported clearance rate is 81.48%.  How can this be?  Well let’s take a look…..the 65 properties that sold before auction are counted as a property that has been sold at auction.  You do the math.

Never judge the property market as improving by the auction results that are published, these results are pardoned the punt bullshit….