Auction results form a fundamental part of how you monitor the market on both a macro and micro level. Thankfully for those buyers and sellers in Victoria, accessing auction results is easy and free, and is one of the best ways to form a thorough understanding of where the market has been and where it is likely to go in both the short and longterm.
What are auction results?
Every week a whole lot of interested Australians check their social feeds or visit a designated auction results webpage to find out exactly how the market performed on not only a national scale but statewide and even down to the specific suburb.
With auctions in Victoria taking place each Saturday, the Real Estate Institute of Victoria collates its data each week and projects the expected number of auctions for the upcoming weekend. Then we all wait as first home buyers, investors, buyers’ agents, and others start jostling throughout a Saturday to be the final bidder at an auction. At the same time, some buyers approach vendors early, turning an auction into a private sale, while other auctions are passed in for a range of reasons.
Following this, the REIV divides the number of sold properties (both at auction and private) into the number of total Sales and Auction results (which include those that were passed in) and multiply that by 100.
What do they get? The auction clearance rates for that week. Accessing auction results is key to understanding how the market is performing as the calculated auction clearance rate for each week is a key indicator of whether or not there are signs of a slowing market, for instance, or if the market is a buyers’ market or a sellers’ market.
Auction clearance rates during a buyers’ market can often fall, which can come down to a range of indicators. A weak economy can put strain on a buyer’s ability to find finance, or it can make them uncertain of where the market is headed, while once indications of a buyers’ market occur, this can create a positive feedback loop of sorts in which people wait in expectation for the prices to fall and reflect a buyers’ market, which in turn places further pressure on prices.
So in whatever situation the market may find itself, accessing auction results for consumers, vendors, investors, agents, regulators and economists is key to understanding where the market is headed.
Where to access auction results in Victoria
In partnership with the Real Estate Institute of Victoria, we provide Australians around the country with access to the latest auction results and clearance rates each week.
Visit the Sales & Auctions Results page to access Victoria’s most accurate and detailed auction results, which are updated each Saturday night ahead of many other providers.
Alternatively, sign up to realestateview.com.au’s Twitter feed, Instagram, or Facebook page for easy access to auctions results and some added macro insights that will help you stay on top of where the market is placed and where it is headed.
Filtering through your auction results
When you access our Sales & Auctions Results page, the first thing that will catch your eye is the clearance rate and detailed information about Victoria’s auction results for the past week. Use this as top-level information that helps you position the Victorian real estate market compared to other states and the country as a whole.
Once you have viewed the auction clearance rate for that week, then scroll down to use the search bar to access auction results for all Victorian suburbs.
Click on ‘Edit auction alert’ to sign up for access to weekly auction results emails. Once you have signed up for weekly auction results, you can tailor them to serve you relevant clearance rates data each week based on the suburbs that most interest you.
What do you do after accessing auction results?
Clearance rates and auction results are an important part of analysing the market, especially for potential buyers and vendors looking to sell their homes.
Stay up-to-date with market insights by visiting our blog while also using auction results to gauge the performance of the market on both a macro and micro scale.
Having access to specific suburb data through auction results allows you to apply a microscope to your market analysis and see exactly how your local market is performing as well as any potential markets you may want to access as a buyer in the future. These auction results are likely to change more dramatically each week compared to state-wide auctions results, but monitoring them over the longterm will help you make the right decision when it comes to investing in property.
Don’t worry about driving down to see how a property has performed on the market. You can check out your neighbours’ auction results immediately as they are uploaded to our site, while also being able to see what other properties are for sale in the same area to monitor how the market is performing.
Aside from having a birdseye view of your local area’s auction results, using state-wide auctions results (often known as the ACR) is key to making smart decisions.
The state-wide auction clearance rate changes due to a range of reasons. The time of year can play a significant role in influencing auction results, with spring traditionally being the busiest period for real estate agents as vendors look to sell their properties before the summer holidays (and hot Saturdays) and buyers look to snap up a bargain in the first few months of the new financial year (and hopefully to move in by Christmas).
The cash rate also plays a significant role in where auction results fall, even down to the week. You can read up more on how the Reserve Bank of Australia’s interest rate affects you here, but essentially the RBA uses the cash rate as a ‘macroprudential’ lever to influence the economy as a whole. It is their go-to tool in their tool belt for pressuring banks across the country to pass on the savings those banks make on a lower RBA interest rate to their own customers via the rates they give on mortgages. Lower mortgage rates (potentially) mean an increase in the number of people seeking finance to buy a home, as buyers see it as a good opportunity and time to get into the market.
Then there are all the other things that affect auction results, from the large (global economic conditions, the state of politics both in Australia and overseas, stock market conditions, resource prices, international investment in Australian products and services, wage growth, employment levels etc.) to the small (public holidays, the weather on a Saturday).
Analysing the market with auction results
When looking at the market and where you think it is headed, accessing auction results is key, but there is another indicator to use in tandem with clearance rates/auction results and that is the number of properties for sale each week.
The breadth of the market or the volume of the market each week will give you an extra level of insight when analysing your auction results. High clearance rates often indicate a buoyant market, one in which buyers are hungry for properties and are successfully securing financing (this is known as a seller’s market). But a high clearance rate is not always a definite sign of a buoyant market. Checking the volume of the market for individual suburbs, cities and state-wide will tell you whether there are high clearance rates simply because of a lack of supply or for other reasons.
Besides analysing auction results and volume of properties that go to auction each week, there are several other indicators that will help you maintain a strong awareness of where the market has been, where it sits, and where it is going:
- Vacancy rates and rental yields are worth keeping an eye on, even if you are just looking to buy or sell a home. The state of the rental market is often a good indicator of other economic conditions as well as the state of the real estate market as a whole.
- Average selling price/property values. These remain a core part of what people look for when assessing the market. Property values are often an indicator of other economic conditions in the country and overseas as they speak to consumer confidence as well as regulatory conditions.
- Average time on market for properties both at a suburb level and larger gives another point of reference for your analysis of the market. The longer properties are sitting on the market as a general trend, the strong the indication that buyers are not active.
Remember to sign up to receive weekly auction results alerts, saving you the effort of sourcing key information that can affect your financial decisions.