Domain Article- Auction Clearance Rates as Lead Indicator

Discussion in 'Property Market Economics' started by House, 26th Sep, 2018.

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  1. House

    House Well-Known Member

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    Bit obvious but interesting seeing the close correlation between the two over the last 20 years.

    “The clearance rate tells us which way prices are going”


    The auction clearance rate coincides with movements in capital city dwelling prices. Figure 1 shows the rolling annual clearance rate (Australia wide) alongside annual growth in the Domain median dwelling price.

    Annual movements in the two indicators are highly aligned over the past 20 years, and are strongly correlated.

    C4ED5DD4-73F3-438E-AA74-963984721E07.jpeg

    E75D1A5D-67D8-46A1-8AD1-C685F97BAD5A.jpeg

    Explainer: Why auction clearance rates matter
     
    Perthguy likes this.