Should I go to auction?

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.

What is the 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:

  • homes sold at auction
  • homes sold before auction, and
  • homes sold after auction.

How should I use the ACR?

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.

Suggestions: how to invest in property,  getting help in property investment,  understanding the property market

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