With an ever decreasing number of auctions due to Winter, school holidays and lack of confidence in the market we are still seeing a consistent clearance rate, but sometimes you need to scratch the surface to find out why.

A high auction clearance rate of 77% typically indicates a strong market, but the low number of auctions (500) may not be representative of the overall market. Here are some factors to consider:

1. Small sample size: 500 auctions are a relatively small number, which can make the clearance rate more volatile and prone to fluctuations.
2. Selection bias: The 500 auctions may not be a random sample of the market, but rather a curated selection of properties that are more likely to sell.
3. Geographic concentration: The auctions may be concentrated in specific areas or suburbs, which can skew the results.
4. Property type: The mix of property types (houses, apartments, etc.) may not be representative of the broader market.
5. Price range: The auctions may be predominantly in a specific price range, which can impact the clearance rate.

To get a more accurate picture of the market, it’s essential to consider other metrics, such as:

1. Total number of properties sold
2. Median sale price
3. Days on market
4. Vendor discounting
5. Market sentiment

The real question is why is the industry pulling so many auctions, with over 1000 auctions scheduled less than 500 were conducted.

It is a common practice in the real estate industry for agents to cancel auctions early if they don’t receive sufficient bids or interest.

This tactic is often used to avoid the stigma of a failed auction, which can negatively impact the property’s perceived value and the agent’s reputation.

By cancelling the auction, agents can:

1. Avoid a failed auction being reported in the media or online platforms.
2. Retain control over the sale process and negotiate private sales.
3. Manage vendor expectations and maintain a positive relationship.
4. Avoid disclosing the property’s true market value (or lack thereof).

However, this practice can also be seen as misleading, as it withholds information from potential buyers and distorts the transparency of the auction process.

Some argue that it’s essential to report accurate auction results, including failed auctions, to maintain market integrity and provide a genuine representation of the property market.

As always the information available to the public is only as good as the data and those that put it in.