Auction Clearance Methodology

Total Scheduled

Represents the total number of residential property auction listings initially and subsequently scheduled to be auctioned for the auction day concerned. The count will include those properties that have been subsequently withdrawn, rescheduled either from or to the day concerned; as well as those properties that have been readvertised as private treaty. A property will not be included if there has not been a specific auction day provided.

Sold Prior

Represents the total number of properties that have sold prior to the auction event.

Sold at Auction

Represents the total number of properties that sold on the day of the auction.

Rescheduled

Represents the total number of properties that have subsequently rescheduled the auction to another day.

Withdrawn

Represents the total number of properties that are no longer advertised either prior to or shortly after the auction day. Withdrawn properties are effectively regarded as ‘passed-in’ properties for the purposes of calculating the clearance rate.

Sold After

Represents the total number of properties that sold shortly after the auction day. Even while the property did sell, sold after properties are effectively regarded as ‘passed-in’ properties for the purposes of calculating the clearance rate.

Readvertised as Private Treaty

Represents the total number of properties that have had their advertisement changed to a private treaty or tender for sale listing either prior to or shortly after the auction event. Such properties are effectively regarded as ‘passed-in’ properties for the purposes of calculating the clearance rate.

Clearance rate

(SOLD PRIOR + SOLD AT AUCTION) / TOTAL SCHEDULED

 

 

Questions and Answers

When do you publish your auction results and what period is it for?

We normally publish on Tuesday afternoons which covers the previous week through to the Sunday.

How do you know when a property is going to auction?

SQM Research monitors online listings from the major listing providers on a weekly basis. We are able to monitor and collect all fields including the address, property types, selling agent. And importantly for auctions, the date and time of auction. For a property to be included, it must have at least an address and a date of auction.

How do you know if a property has sold or passed in, etc?

Once again, through the weekly monitoring of listings. Real estate agents will update their property advertisement usually within 48 working hours after the auction day, for which they will either readvertise that the property is still for sale or will mark the advertisement that the property has sold, usually with a date of sale.

What properties are included/excluded in your counts?

All Australian residential properties including vacant land for residential use are included. Commercial properties are excluded from the list. As mentioned, a property must advertise their address and a date of auction in order for it to be included in the count.

What if an agent doesn’t update their ad in time?

All agents eventually update their advertisement. It is in their interest to let prospective buyers know that the property is still for sale or let the market know that they, as an agent, have had success in selling the property. Sometimes agents can take longer than 48 working hours to do adjust their ads. Through testing we have found that it is less than 1% of agents that take longer than 48 hours. In such rare cases, SQM Research will treat the property as passed in and has been readvertised for sale. If the agent subsequently reports a sold under the hammer event later in the week, we will update the results page to reflect the new information (and cross check with peer information) when we run our next monitor.

I have clicked on one of your links that state the property has been readvertised for sale, but the ad now shows the property has sold. Is this an error?

No. Our auction results is a snapshot as at the time of update. Many properties that were passed in at auction are eventually sold sometime after the event.

I have clicked on one of your links that state the property has been readvertised/rescheduled for sale, but the link no longer works. Is this an error?

No. It most likely means the property has been withdrawn from the market or is now with another agent who has commenced a new campaign.

What about properties that have been reported as “under contract” or “under offer”?

We do not regard such properties as selling under the hammer and as such the property is still for sale. Such terms indicate that a sale is in process but it is on a condition basis. Such terms are usually applied to private treaty properties but we are also aware that a number of Queensland agents will state an auction property in question is under contract, even while the property may have sold under the hammer. Please note properties going to auction generally have no cooling off periods and so are selling unconditional.

Why are you including sold prior auctions in your calculation of the clearance rate?

Because it was a successful campaign for the vendor. Vendors use auctions to get a definitive sale within a specified time. Auctions selling prior to the event have achieved this goal. By the same token, auctions selling after the event are not included in the clearance rate as, even while the property did eventually sell, it sold after the time the vendor wanted it sold. As a vendor, you don’t take your property to auction in the hope it sells ‘after the event’!

Will you be developing a back series earlier than February 2020?

We hope to develop a back-series through to January 2019.

Your series appears to record a clearance rate lower than other companies are reporting. Why is that?

Each company has its own methodology in the calculation of the auction clearance rate. Often our peers will produce a ‘preliminary clearance rate’ on a Saturday which then is revised (often lower) some days later. The revision is due to the fact that auctions that are reported late or not often at all, are failed campaigns and that the preliminary result recorded by our peers is only based on results reported by the agent to directly to them. We find our peers rarely have all the results reported and can often miss 20% to 40% of auctions. In our view, we believe that it is best to wait until all or nearly all the results are known. And the most definitive way of getting the actual result and the final clearance rate is to wait for a small number of days and monitor how agents have changed the property advertisement.

Where to from here?

In time we intend on publishing some auction statistics at the postcode level.

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