Headlines about the clearance rate can be misleading until you look a little closer.

The Melbourne property market recorded a clearance rate of 76% on the weekend.

Boiling down the numbers it shows a far different picture;

Scheduled Auctions: 1243
Reported Auctions: 639
Total Sold: 485

– A higher clearance rate, such as 75% – 80%, indicates high auction interest and a hot or seller’s market.
– A higher clearance rate is not necessarily indicative of a strong market, just as a low clearance rate from high auction numbers does not always indicate a declining market.
– The number of auctions held varies throughout the year and often depends on a range of factors such as suburb trends, supply and demand, quarterly seasons, public holiday weekends, market
conditions and children’s school holidays.
– The auction clearance rate can be used as a barometer to gauge market sentiment, it is only one of many indicators and it should be used in conjunction with your own market research or with
the help of a professional.

The Melbourne property market has been experiencing some stability after a correction over the last eighteen months following the covid boom; resulting in reduced buyer activity, fewer auctions being called, a steep increase in properties passing in, and properties spending more time on the market. However, the recent interest rate holding patter has seen some people regain a little bit of confidence in the market.

Please note that the property market is constantly changing, so these conditions may not last and may not be interpreted correctly by most people.