Are falling auction clearance rates a sign of a property downturn?
With yet another week of preliminary auction clearance figures trending below 70 per cent, the whispers of a property downturn remain. There is no disputing that clearance rates are lower than what we saw in Autumn, but when you compare today’s stats to June 2016, you’ll see that the results from the same time last year are relatively similar - clearance rates sat at 67.4 per cent (across 2,183 auctions).
See, it’s not unusual to see a dip in winter. There tends to be less on the market and, as a result, sales activity falls. The real risk we’re facing is that all the talk of falling property markets could create uncertainty in the minds of homeowners and buyers across the country, and that’s when we could see a real impact.
What we are experiencing within Belle Property paints an entirely different picture. Over the weekend of the 24-25 June, we achieved an overall clearance rate of 90 per cent, which indicates to us that there’s nothing much wrong with property markets!
What’s important to remember is that June and July – more often than not – will be the quietest months in real estate. The national data that’s emerging is in keeping with that and is not a cause for panic.