With an overview of our November auctions now completed, we can acknowledge a 46% clearance rate (selling prior to or on the day) and a marginally higher success rate of 75% (inc post auction sales). As a measure, some will mark these figures as either a pass or a fail and certainly we have no argument with either of these conclusions. Interestingly the overall auction clearance rate in Brisbane was published at just 20% in last weekends Sunday Mail 4/12/11.
What is not published or recorded with the same level of diligence as Auctions results is the sale rate of Private Treaty properties (those marketed with a price, approx greater then 70% of the total market). To gain some perspective, lets assume for a moment using the lower auction clearance rate of just 20%, in context would a sale rate of 1 in 5 of every properties (excluding auctions) on the market in Brisbane this coming weekend be considered a success?
The answer is a definitive Yes! more to the point; selling 1 in 5 of all properties on the market this weekend would position us more in a ‘bull market’ then the current ‘bear position’ we see ourselves today.
The property industry broadcasts that the market is considered to be at the ‘bottom’, likewise buyers also acknowledge that property prices today are in their favour. Even with these two admissions its not actually causing buyers to rush out and purchase. Even though current property prices are comparably lower then previous years, this alone fact isn’t creating a sense perceived value. Today, buyers are factoring in that assessment of the perceived value and then adding a slight percentage of risk for any subsequent downward price shifts they market intends to move before we start to see the upward swing once again, nobody denies the upward lift will happen, its mere a question of how long until it does.