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If you’ve ever followed property news or auction results, you’ve probably seen headlines quoting clearance rates. They’re often used as a quick snapshot of how the market is performing; but without the right context, they can be misleading.

So what do auction clearance rates actually tell you? And how should you interpret them?

Let’s break it down.

What Is an Auction Clearance Rate?

At its simplest, a clearance rate is the percentage of properties that sell at auction.

It’s widely used because it offers a fast read on market conditions:

• High clearance rates: typically suggest strong demand and competition
• Low clearance rates: can indicate a softer market with fewer buyers

But here’s the catch: not all clearance rates are calculated the same way.

Not All Sales Are Equal

When people think of auctions, they often picture a property selling under the hammer. But in reality, properties can sell at several different stages.

That’s why there are different ways to measure clearance rates.

Under the Hammer vs Overall Clearance Rates

• Under the Hammer Clearance Rate: This is the strictest measure of auction success. It only counts properties that sell during the live auction, when bidding reaches the reserve price and the hammer falls.
  • It reflects real-time competition
  • It shows how many buyers were willing to commit on the spot
• Overall (Total) Clearance Rate: This is a more comprehensive measure that includes all successful outcomes, not just those during the auction itself.
  • Sold under the hammer
  • Sold prior to auction
  • Sold after auction (e.g. after being passed in)
  • Sold on auction day (i.e. prior to 12:00am the following day)
  • Withdrawn but later sold

💡 In short: Under the hammer shows auction-day pressure, while overall clearance shows total market movement.

The Crucial Difference: Gross vs Net

Even within these categories, there’s another layer that can significantly change the numbers: gross vs net clearance rates.

Gross Clearance Rate

• Definition: The gross clearance rate includes everything that was scheduled for auction, even if the auction never actually happened.
• Includes: Withdrawn properties and postponed auctions
• Why this matters: It reflects the true pipeline of listings and gives a more transparent picture of market conditions

Net Clearance Rate

• Definition: The net clearance rate removes properties that didn’t make it to auction
• Focus: Only auctions that actually took place
• Why this matters: It allows for cleaner comparisons between auction results and focuses purely on active auction performance

Why You Should Pay Attention

• Comparison matters: Two reports might quote the same clearance rate, but if one is gross and the other is net, they’re not directly comparable
• Gross rates: Tend to be lower because they include more properties
• Net rates: Tend to be higher because they exclude withdrawals and postponements

📌 Pro tip: Always check how the clearance rate is calculated before drawing conclusions.

What Clearance Rates Really Mean for You

• Under the hammer rate: Suggests intense competition
• Overall rate: Indicates solid buyer demand
• Gap between gross and net: May reveal how many auctions aren’t proceeding

Looking at all these together gives you a much clearer view of the market than any single number alone.

Final Thoughts

Auction clearance rates are powerful; but they’re not as simple as they seem.

Understanding the differences between under the hammer vs overall results and gross vs net calculations can help you move beyond the headlines and make better-informed property decisions.

Because in real estate, it’s not just the numbers that matter—it’s how they’re calculated.