Sydney Melb Auction results 82% & 72%

The idea auction clearance rates herald market strength like some sort of oracle is also a sketchy notion at best. e.g. you often see this make the rounds as an attempt to show clearances and prices correlate, but there are frequent points on that graph where prices and clearance rates move in the opposite direction. e.g. look at 2016/2017 - that's a good 6 months where the two were telling wildly different stories.

They can correlate, but dissecting them week to week is really not very useful - at best they're only helpful/potentially indicative over a longer period.

The market is certainly stronger than it was early in the year (unless you believe REA), and clearance rates are up, but they can rise due to low volumes, seasonal differences, and other factors such as relative strength in premium suburbs, where more auctions tend to happen.

/r/AusFinance Thread Parent Link - domain.com.au