In this episode I will show you exactly how to find the auction clearance rates of an area.
In this video, I’m going to show you how to find auction clearance rates for an area. Auction clearance rates can be extremely valuable in understanding how many properties that actually go to auction end up clearing and selling at auction. This can give you a great idea of demand in the area, as well as how you should negotiate.
In order to find the auction clearance rates for an area, you need to go to a website called dsrdata.com.au and you can create a free account by clicking on the Join button in the top right-hand corner. Once you’ve joined, go ahead and login. Once you’ve logged in, under the suburb analyzer section, which should load automatically, go ahead and enter your suburb. The only thing you need to be aware of is you need to choose either houses or units for the suburb.
If you’re serious about investing in the suburb and you’re not sure whether you want houses or units, just go through and do this task twice so that you can get auction clearance rates for both houses and units. I’m going to go ahead and enter an area. In this case, I’m going to choose Cronulla, which is in Southeast Sydney and I’ll choose units because the area is mostly units.
If we scroll down, we will see here auction clearance rate (ACR) of 75.5%. We can also go to this context ruler, click on that, and we can see how this compares to the rest of Australia. We can see the median for Australia is 34.8%. The average for Australia is 38.7%. And we can see that it’s the 47th percentile out of 18,000 markets. So, 75.5% is in the green there. And we can also go ahead and click on the history and we can see the auction clearance rate history of the area.
So we can see how it has trended over time and we can look back 3 years into the past and we can see that auction clearance rates have increased. And so, more and more properties are clearing at auction. Increased to about late 2014 or something and then has been steady above the 75 mark and, in fact, this month that I’m doing this is the first month it’s dropped below 75 since mid-2014. So, being able to see this graph is a great idea because you can just see the trend for the area and you can use that to predict what’s going to happen in the future.
So that is how you find auction clearance rates for the area. DSR data also provides you with a lot of different valuable information, like vacancy rate, average vendor discount for the area. This online search interest. Percentage stock on market. The days on market – how long it takes to sell a property. As well as this demand-to-supply ratio or the DSR, which gives you an idea of how much demand there is for property in an area.
So very useful tool. And so, if you are out there looking, what are the auction clearance rates in the area? I’ve heard them quoting auction clearance rates in magazines or on podcasts or whatever. Now you can go ahead and you can find the auction clearance rates for yourself. You can see how it compares to the rest of Australia and you can even see a trending history for auction clearance rates.
I’m Ryan from onproperty.com.au. And if you want to learn how to research an area and the 18 statistics that you should look at to research an area, check out my course on Advanced Suburb Research by going to onproperty.com.au/research. That’s it for me today, guys. Until next time, stay positive.