rpdata, APM & REIV - Clearance Rate

[rabidz]

I was wondering why the clearance rate from rpdata is always lower than APM & REIV (in Melbourne)?

For example this weekend (tendency from week-to-week):
rpdata = 64.7%
APM = 74.4%
REIV = 73%

The gap of almost 10% is pretty big, but I don't know which one that is the most accurate one. Any thoughts?

 

[rabidz]

Any comments on this, please?
Thanks.

 

[bumskins]

Looking at Sydney Prices on APM:

It always seems to be revised down 4-5% by the next week compared to the Saturday headline clearance rates. So they do jump around quite a lot.

Noticed RPData always seems to come in with a lower rate from the start.

All annecdotal.

 

[Chris B]

The clearance rate doesn't really mean much without looking at the underlying data and focusing on specific suburbs or areas.

IMO the way the results are generally reported/interpreted in the media is mis-leading anyway. Most people don't realise but there is an obvious bias to make auctions seem more successful than they actually are.

The clearance rate reported by the REIV includes all properties that sold prior to auction (Last week 136), sold at auction (741) or sold after auction (3). They are all successful sales but not all successful auctions.

The calculation does not include auctions that were postponed (27), withdrawn from sale (23) or no result reported (29) - which to me all sound like failed auctions or auctions that were going to fail.

Logically, it should be either a calculation of all properties advertised for auction for the weekend and whether they sold (i.e. including withdrawn, postponed & no result) OR a simple calculation of the properties that were actually auctioned and whether they sold at auction (not including properties sold prior to or after auction).

 

[rabidz]

The clearance rate doesn't really mean much without looking at the underlying data and focusing on specific suburbs or areas.

IMO the way the results are generally reported/interpreted in the media is mis-leading anyway. Most people don't realise but there is an obvious bias to make auctions seem more successful than they actually are.

The clearance rate reported by the REIV includes all properties that sold prior to auction (Last week 136), sold at auction (741) or sold after auction (3). They are all successful sales but not all successful auctions.

The calculation does not include auctions that were postponed (27), withdrawn from sale (23) or no result reported (29) - which to me all sound like failed auctions or auctions that were going to fail.

Logically, it should be either a calculation of all properties advertised for auction for the weekend and whether they sold (i.e. including withdrawn, postponed & no result) OR a simple calculation of the properties that were actually auctioned and whether they sold at auction (not including properties sold prior to or after auction).

Thanks Chris. I didn't know this info before.