While national auction clearance rates have remained flat for some time, they are still a viable selling method for agents, one industry pundit has claimed.
Australian property Monitors senior economist Andrew Wilson told Real Estate Business, strong buyer demand and a shortage of stock will drive clearance rates forward over the longer term.
“I think in most markets given the shortage of supply, we can expect to see auction results begin to pick up over the longer term with strong competition between buyers and the numbers of available stock.”
In many instances, properties which don’t sell at auction in the current market, are selling soon after, Mr Wilson said.
“Despite properties being passed in we are seeing sales happen just after auction,” he said.
Mr Wilson said auctions were an effective way to stimulate competition for a property.