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Clearance Rate History

PPG_Blog_December_image 4_history of clearance rates

The Real Estate Institute of Victoria (REIV) began recording auction market data back in 1981. Analysis of that archived data shows that in the last 31 years the average clearance rate at auction has been 66%.

The statistics show that the clearance rate for the 1980s was 66%. In that decade there were around 155,000 auctions held. In the 1990s the clearance rate was lower at 62% for the 218,000 auctions held. Interestingly auctions also increased in popularity over that decade with many more than the previous 10 years.

In the last completed decade the number of auctions held increased as did the clearance rate. There were around 250,000 auctions in the 10 years to 2010 and a clearance rate of 71%.

The REIV’s historical record is extremely useful data for those selling, buying or leasing as it provides a helpful context for the current state of the market in which the clearance rate has been around 61%. As the long term clearance rate for residential auctions is 66% it also shows the current level of demand is not particularly low. The current market is in fact, more consistent with the historical norm than when clearance rates were over 80% in 2007 and during some weeks in 2010.

It is also clear that auctions have increased in popularity over the 30 years of data collection. In 1981 there were around 10,000 auctions whereas last year saw around 32,000.

(Figures sourced from the REIV)

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