The latest numbers collated by the efficient Essential Information Group show that August in the auction rooms were no better than the traditional ‘private treaty’ market.
A commendable 68% of lots offered for sale actually sold which is slightly up on August last year but the number of lots for sale was a stonking 31.7% lower. This compares with a larger fall in the number of homes that sold in the usual way in what is called a ‘private treaty’ sale. The last 12 months saw 26,537 lots sold down 13.6% on the previous twelve month period.
Sellers expectations appear to have become much more realistic over the past quarter and the lack of supply has had an impact on both prices and on the revenue generated.
Although new repossessions, the staple fodder of auctions fell in the 2nd quarter according to the Financial Services Authority, reports today seem to have missed the number of repossessed properties actually being sold which rose by a whopping 126% on the same quarter (Q2) in 2008 to 15,804. The stock of repossessions at the end of each of these periods increased only slightly from 21,360 to 25,628.
Quite why there has been this huge rise in the number of properties being sold when the number of new properties being repossessed in the first place has risen by just 13% over the same period to 13,610. The Ministry of Justice had been expect to take steps to hold back the tide of repossessed properties being sold but lenders appear to have panicked and unloaded these properties perhaps fearing that their value was going to be further eroded.
It is hard to predict whether the volumes of sales coming to auction is going to increase but two out of three lots selling is a significant improvement on the rates just twelve months ago which were as almost 50:50.