In short, not a whole lot about your actual chances to buy one specific home. Now, here's the longer version:

Auction Clearance Rate is a number often reported in the media and is calculated as:

Number of Properties Sold at Auction / Total Number of Auctions

= Auction Clearance Rate %

A high auction clearance rate (e.g. 80% and above) can represent:

• Strong demand from buyers

• Increasing prices as buyers fight it out at auction to secure the property

• Limited supply of the types of property people want to buy

• Vendors are achieving a sales price they are happy with

A low auction rate (e.g. Under 70%), can represent:

• Few buyers in the market

• Prices stabilising or potentially reducing

• Lots of properties to choose from

And then there is the 70 - 80% range of auction clearance rate which is about the average for Sydney - when the market is a fairly level playing field between buyers and sellers.

Above all, a % figure that represents auctions all over Sydney on any given week, does not really help you buy an individual home that you've fallen in love with. So don't let it scare you, and don't be fooled into thinking you can score a bargain.

If you would like to engage Purchase with Penny to bid at auction on your behalf, find out more about our Auction Bidding services.