How the clearance rate is calculated

Anthony Radford | Bendigo Weekly | 02-Aug-2011 3

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Each week the REIV calculates the expected number of auctions to be held based upon the number of properties advertised for sale.
First calculated on a Saturday and then updated on a Sunday and Wednesday, the clearance rate is calculated by dividing the total of those sold before, sold at auction and sold after by the number of reported auctions.
Auctions that are postponed or withdrawn are not included because they have not been subject to a full campaign.
In the last four weeks there has been an average of five postponed and four withdrawn per week.
Over the same time there has been an average of four results where we have not been able to obtain the result.
Over the past seven years the REIV has adopted the same methodology for classifying results.
Sold Before: Sold Before describes homes listed for auction but sold before the auction.
Depending on market conditions around 20 per cent of all homes offered at auction are sold before auction day.
Sold: Sold describes homes that are sold to the highest bidder at the auction or after the auction on the same day.
Sold After: Sold After describes homes sold the day after the auction and which are subject to auction conditions.
This occurs for only a few homes each week.
Passed In: Passed In describes homes that are not sold.
In this case, the buyers have not met the price expectations of the seller.
Passed In on a Vendor Bid: Describes homes that are passed in but when the last bid was a vendor’s bid.
It is a legal requirement that this information be disclosed if the result is published.
The REIV is committed to providing transparent information about the Victorian property market and will continue to do so to help buyers, sellers and our Members.

Enzo Raimondo

CEO REIV

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