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Friday, July 30, 2010
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Election and auctions Analysis of auction sales figures by the Real Estate Institute of Victoria (REIV) show, 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 November 24, which, unlike this year, was the peak of the spring selling season. In response to the election announcement, it is apparent some vendors, in conjunction with the estate agents, shifted auctions to the weeks before and after the election. The fortnight before the election, there were 897 auctions, the weekend before that, 1197. On election day, the numbers dropped to 689, before lifting again to 997 the weekend after. 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 happened on October 9, 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 buyers 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.

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