I lie impaled by your rapier-like wit.
essence said:
Seriously, WTF are you talking about? It's OK if you don't know...
Last nail in the coffin of property doom and gloom
- Thread starter essence
- Start date
I lie impaled by your rapier-like wit.
Seriously, WTF are you talking about? It's OK if you don't know...
Exactly. Lets take 1 property out of 100,000,000 that has a chance of selling and go to auction. That 1 property sells. We now have 100% clearence rate!!!! 1/1 sold!!!!!!!!!
We need to get a lot more skeptical about statistics. They are being misused all over the place to fit an agenda.
The auction clearance rates are quoted weekly by DadofSam on your forum. The recent low clearance rates were taken as gospel evidence of a crashing market (the low listing volume being irrelevant of course). Now that the clearance rates are high... well, the figures are obviously being 'misused' and we should be skeptical because of the low list volume.
Bizzaro!
LMFAO
Token Funder, sorry but I definitely can't help you translate. I have no idea...
Thats Ok. Understanding plain English is not compulsory in this country. As long as you are not burning Australian flag, I am happy.
The uneducated masses on the subject don't tend to fix their rates. That's why we hear all the sob stories in the media about them all losing their houses because rates keep going up.
"If rates keep going up we're going to be out on the street!"
THEN FIX!!!! Don't expect them to learn this time, no doubt we'll see the same headlines again once rates start rising.
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My forum? Do I own a forum?
Clearence rates are useless whether they are 2% or 98%. I'm consistent both ways.
Of course it is useless - all those abstract numbers. It is only voices inside your head that matter.
You mean like when 1 fibro shack is the only house sold for the month in a suburb so now the median price for that suburb has crashed 40% ?
Yes, but I'm not allowed to mention its name.
Then tell DoS to stop posting useless data every week! I can't believe you allow this on your forum.
Over recent weeks when the clearance rates have risen above 70%, do you believe they are being manipulated more than during the previous year when they were generally only around 40-50%?
If not, do you agree that the clearance rates have risen sharply nationwide (i.e. assuming a consistent degree of weekly manipulation).
Alternatively, if you believe there is currently increased manipulation (to get the rates up to 78%), why are they doing this additional manipulation now, and not a few months ago?
Cheers,
Shadow.
Mate, i don't know what you are on about. I don't get into the minutiae of it all as you love to do. You'll have to ask the REI's your questions.
I just know that agents submit the auction results to the REI's voluntarily (they don't have to) and they are easily manipulated. Always have been.
I just know that agents submit the auction results to the REI's voluntarily (they don't have to) and they are easily manipulated. Always have been.
Of course they are manipulated. Rationale for RE Agents to pump up clearance rates artificially is clear as an infant's tear:
"Let's create an illusion of property boom, so those vendors stop listing in false expectation of price rises, we get no properties to sell and loose our income. Money is evil. "
I talk ot them everyday, and here is the typical dialog:
Me: So, How is the market?
Agent: Mmmmm... There are still people buying...
Me: Have you got anything new coming that I do not know of?
Agent: Mmmmm.... Not really. It is hard to get listings these days....
Me: In October I remember you were having on average 3-4 viewers at open house. How many you get now?
Agent: Mmmmm... Depends.
Me: Ok, XX, YYYY Street - how many did you have today ?
Agent: Mmmmmm.... 25 as far as I remember
Me: So it looks like property boom?
Agent: Oh NO,NO!!! There will be no property boom for many years to come!!!
Remember this:
Agents do not care about the price they sell for. At 2% commission they get more money selling 3 houses for $500K than 2 houses at $550K. The only thing they care for is number of listings they have. More listings - more chance to make more sales and more chance to condition vendors into accepting low price.
Yes, yes i know. Its called volume. Agents love volume. they're not too fussed on price.
Agents love to create the illusion of activity in the market (or a boom) as people think they will miss out at current prices or miss out on the place they really want so they buy now. Ive seen it happen so many times.
And manipulating clearance rates achieves that goal pretty nicely.
Agents love to create the illusion of activity in the market (or a boom) as people think they will miss out at current prices or miss out on the place they really want so they buy now. Ive seen it happen so many times.
And manipulating clearance rates achieves that goal pretty nicely.
Interesting thing. Knowing all the right info and still coming to wrong conclusion. Agents do what you say they do when they flooded by listings, which is not the case now when they forced to fake presence of listings.
The other instance they scaremonger buyers is when they condition "time wasters". It is category of buyers which take months and years to find the property. Every agent in the area knows them, they are sick of them and they simply forced into impressing some sense of urgency on them.
Tomorrow is Saturday, I challenge you to go to any open house and ask viewers what the last auction clearance rate was. If half of them will turn out to know what the hell is auction clearance rate - it will be a big surprise.
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