Hi
I am new to investing and looking to increase my knowledge with goals to invest in 2014.
I know there are quite a lot of sites out there providing information, many of which requiring it to be bought. I am wondering if someone could direct me to the best source or couple of sources for information (preferably free, or very much worth the money). I am especially interested in auction clearance rates that breakdown a suburb by property type, though any reputable sources for all kinds of data would be appreciated.
Kind regards
RE industry manipulates auction clearance rates. Take them with a grain of salt.
I agree with Freckle.
Why are you interested in auction clearance rates? What are you hoping to gain from this knowledge?
There are a LOT of other things that will be more helpful than auction clearance rates.
Some cities don't tend to use auctions as much as others. Sydney used to be one of these. The reason they are gaining popularity now is that people are getting into a bidding frenzy in the fear of missing out.
Catalyst wrote:The reason they are gaining popularity now is that people are getting into a bidding frenzy in the fear of missing out.The primary reason is they are a huge and profitable income stream for RE agencies. Another tool to milk the seller.
Thanks for your replies.
Ok, interesting. I would have thought there would be relatively reliable statistics out there. Do you feel that they are unnecessary in evaluating a location?
Catalyst, I am interested in Auction Clearance Rates to get an appreciation of the market in certain areas, and for different property types. You say there is a lot of other information out there, what exactly are you referring to?
I still am not clear about what you hope to gain out of the clearance rates. How will they give you an appreciation of the market? So if it's 70% what does that tell you? Sometimes agents talk vendors into dropping their price. So it sold but below market. Auctions in some areas are a very small percentage of total sales so won't give true figures of total sales. A lot of people dislike auctions so there may be low clearance rates but good sales overall. If it's a FHO area they are more likely to be fearful of auctions.
Just looking at auction clearance rates tell you nothing about demographics, infrastructure, what's driving the boom/bust etc.
More useful would be median price, how long are properties on the market before selling, rental prices and vacancy rates (assuming it's for an IP), research the area (streets-good and bad), how prices differ in different parts of the suburb, neigbouring suburbs (have they shown growth? will you get a flow on?).
Look at trends- sales, rentals, infrastructure, population growth.
As with almost all statistics I was planning to use them in the context of past results to look for trends and general market sentiment. I recognise all the issues you state regarding these statistics Of course, as with any stat, its not the be all and end all, just another indicator to use.
One thing I really like about forums is the ability to ask the silly questions and learn from misguided thought processes so thank you for your guidance.
After a fair bit of searching, the only place i can find bulk statistics is the back of property magazines. Some people advocate looking for statistical trends and indicators and then doing fundamental research on the area and honing in. Where do we start with getting the statistical data (for example, of the greater sydney region)?
I use auction clearance rates to get a broad snapshot of market sentiment in Sydney or Melbourne (big markets only) over a 3,6,12 months period it should be used with other indicators (Stock on market, private treaty discounts etc)
I get my Auction clearance rate (and other data) info from the back pages of Australian property investor.
However as freckle said it must be taken with a grain of salt.
If you need the data on auction clearance rates, you can view them on https://www.propertyinvesting.com/auction-clearance-rates/.
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