The Truth About Auction Success Rates: What Buyers Need to Know

Why clearance rate data matters but not always in the way you think 

If you’ve followed the property market, you’ve probably seen headlines about auction clearance rates. Every weekend, the percentage of homes sold under the hammer is reported as a kind of market health check. 

But what do those numbers actually mean for you as a buyer? And how should you use them when making decisions? 

What Are Auction Clearance Rates? 

Auction clearance rates measure the proportion of properties sold at auction (or before auction) compared to the total scheduled. 

• A rate of 70% or higher is generally seen as a seller’s market. 

• Rates around 50 to 60% suggest a more balanced market. 

• Below 50%, buyers usually have more leverage. 

Why Clearance Rates Matter 

Clearance rates are often used as a leading indicator of buyer sentiment: 

• High clearance rates mean strong demand, competition between bidders, and upward pressure on prices. 

• Falling clearance rates point to caution among buyers, more passed-in properties, and greater negotiation opportunities. 

The Limits of Clearance Rates 

While useful, clearance rates don’t tell the full story. 

1. Geography matters: Clearance rates are averaged city-wide, but results in inner suburbs can be very different from outer areas. 
2. Not all sales are auctions: In many regional markets, auctions are rare, so clearance rates don’t reflect overall conditions. 
3. Pass-ins can still sell: A “failed” auction doesn’t mean no sale, it often means the property sells later, through negotiation. 
4. Volume counts: A clearance rate based on 200 auctions carries more weight than one based on 20. 

What This Means for Negotiating Power 

For buyers, clearance rate trends are less about predicting prices and more about understanding leverage. 

• In a high-clearance environment (70%+), expect less room to negotiate, tighter vendor expectations, and a need for strong auction strategies. 

• In a balanced market (50–60%), negotiations after a pass-in are common, giving prepared buyers more opportunities. 

• In a low-clearance market (<50%), buyers can often secure properties below the vendor’s original reserve. 

The key is to interpret the data alongside suburb-level insights and your own property goals. 

How LongView Helps Buyers Use This Data 

We don’t just watch clearance rates we analyse what they mean for you: 

• Breaking down auction results by suburb and property type. 

• Identifying when conditions give you more negotiating leverage. 

• Preparing auction and post-auction strategies so you don’t overpay. 

• Advising when to walk away and when to act quickly. 

Because clearance rates aren’t just numbers on a page. They’re signals that, when read correctly, can give you the confidence to buy smarter. 

Thinking about buying this spring? 
Book a consultation with our Buyer Advocacy team and learn how to turn market data into negotiating power.