There are many indicators used to identify the health of the property market. One statistic buyers and sellers alike keep a keen eye on is the auction clearance rates, or ACR.
In simple terms, the ACR indicate how many homes have sold at auction across a state on any given weekend. Expressed as a percentage, it provides prospective buyers and sellers a broad snapshot of market sentiment.
It is calculated based upon three types of sale:
If you are selling your house, the ACR will help you decide whether to go to auction. If you are trying to buy a property, the ACR might determine whether you put in that winning bid this weekend.
A higher than normal percentage, around 80%, means that demand is high and suggests it’s a good time to sell your property. If the ACR is lower, it is generally considered a better time to buy property. 50% is perceived as neutral.
Whether you are thinking of buying or thinking of selling, the ACR is a useful barometer. However, the ACR is vulnerable to a lot of different factors. Looking closely at the market from every angle will help you get the best price on auction day.