The auction clearance rate in Victoria has, on average, remained above 60 per cent since records started being taken in 1981, according to data released by the Real Estate Institute of Victoria (REIV).
In an analysis of its archived data, the REIV found the overall average clearance rate for the last 31 years has been 66 per cent.
“REIV records of the auction market commence in 1981,” the organisation said. “They show that the clearance rate for the 1980s was 66 per cent. In that decade there were around 155,000 auctions held.
“In the 1990s the clearance rate was lower at 62 per cent for the 218,000 auctions held. Interestingly, auctions increased in popularity over that decade with many more than the previous decade.
“In the last completed decade the number of auctions held increased, as did the clearance rate. There were around 250,000 auctions in 10 years to 2010 and a clearance rate of 71 per cent.”
The REIV said the analysis showed the current state of the market, in which the clearance rate has been around 61 per cent, is not unusually low.
“The current market is in fact, more consistent with the historical norm of clearance rates in the 80s in 2007 and parts of 2010,” it said.
“It is also clear that auctions have increased in popularity over that time as in 1981 there were around 10,000 auctions, whereas last year saw around 32,000.”
Only recently, the REIV launched an online tool which allows users to identify auction clearance rates by suburb.