Analysis of auction sales figures by the REIV shows that, not unlike a public holiday or the AFL Grand Final, the Federal Election can affect the date of an auction more than clearance rates.
In 2007 the Federal election was held on the 24th of November, which, unlike this year, was the peak of the spring selling season.
In response to the election announcement, it is apparent that some vendors, in conjunction with the estate agents, shifted their auctions to the weeks before and after the election.
There were 897 auctions the fortnight before the election, and in the weekend previous to that, 1197. On Election Day, the numbers dropped to 689 before lifting again to 997 the weekend after.
The Election Day may have had an impact on listings but the clearance rate was unaffected as it remained between 78 and 81 per cent throughout the period.
A similar outcome occurred on the 9th of October in 2004. The weekend before the election there were 494 auctions, the weekend of the election there were 258, and there were 494 the weekend after that. The clearance rate remained between 60 and 66 per cent throughout the period.
Sometimes the decision is taken to shift the date of the auction to ensure the maximum number of potential purchasers can attend. This is what happens every year on Grand Final day; thankfully, those vendors who choose to hold their auction on the day of the election can rest assured that if past years’ outcomes are to be repeated, their chances of selling are not negatively affected.