Melbourne’s Genuine Auction Clearance rate was again under 50%.
The published clearance rate by the REIV only includes ‘called in’ auctions.
The market has been averaging 98 ‘unreported’ auctions for the last month.
This reminds us of the ‘work 2 hours per fortnight and we will consider you employed’ style of statistical largesse we have allowed to fester in a market of spin.
This weekend’s Genuine Auction Clearance rate was 48%. There were 81 ghost auctions (unreported). The general public was told a different story – the clearance rate reported in the press was 56%.
The average Genuine Clearance rate for the last month just scraped in at 50.2%.
This is not the sort of market one should be entering. The pile of housing stock on the market is building by the day. A staggering 68% more property was on the market in April 2011 vis April 2010 (SQM Research). The 68% was a staggering 20% jump in stock from March’s 48% figure.
Vendors are being forced to discount their properties if they want to compete in the marketplace. The longer it has been on the market, the more likely price discounts will occur.
Don’t Buy Now – patience will reward you with lower prices, just like the world’s leading economies.
How are buyers expected to make informed decisions when the nature of ‘fiscal conservatism’ has been turned upside down? When studying economics, commerce or finance, we are constantly reminded to understate our figures to cover for any unexpected events.
With the continual influence of vested interests over-riding the need for checks and balances, the have’s, the insiders are privileged with data that supports their market position.
However, the have not’s, the less educated, are left to ponder the data in the dark as they dive into the biggest investment decision of their lives with less than ‘perfect information’.
Tune in to our sister site www.earthsharing.org.au post 12 noon tomorrow to read more on how our housing statistics have been sculpted to suit those in the know.