Auction clearance rates are a common statistic individuals involved in real estate look at to gauge the state of the market. Buyers, sellers, investors – they can all use this figure to see if it's the right time for them to make a leap or if they're better off staying put.
That's partly why there has been such a great deal of attention lavished on Sydney's clearance rate over the last few weeks. It's also the reason why anyone investing in property in St George or Carlton might have been a little more chipper over the last week.
According to figures gathered by CoreLogic RP Data for the week ending August 17, Sydney's clearance rate finally crossed the 80 per cent mark, after weeks of staying put in the high 70s. Of the 702 reported auction results during the week, 80.3 per cent were successful sales.
By contrast, the five previous weeks had seen the Harbour City unable to cross this milestone, which it had been regularly doing months before. Its clearance rate the week before this was 78.3 per cent – close, but not enough.
It's important to note that a clearance rate in the high 70s is by no means bad. It is still higher than the 44.4 per cent Perth posted for the week ending August 10, or the 61.8 per cent recorded by Brisbane in the same period. The return to the 80s simply means that buyer activity in the New South Wales capital could be returning to the intense levels seen in months prior, great news for anyone hoping to fetch a tidy sum for their real estate in Carlton.
It will be interesting to observe the release of the auction figures for the week just passed. If the 80 per cent mark is crossed again, investors will want to take notice.