Auction homes go for 32% less than average property prices

by Property118.com News Team

10:25 AM, 13th July 2011
About 9 years ago

Auction homes go for 32% less than average property prices

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Auction homes go for 32% less than average property prices
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Property auctions on the Rise

The number of homes going under the hammer at auctions across the UK are have soared by 30% in a year.

Investors and home buyers are picking up properties at bargain basement prices, according to the latest figures for May.

Just over 2,700 homes were offered at auction, with 1,867 (68.5%) selling for a total of £258.9 million.

The figures are up all round on May 2010, which saw 2,102 homes offered for sale with 1,398 sold (66.5%) for £212.5 million.

“The first five months of the year have shown an overall improvement in monthly results, except for March, when the number of lots offered and amounts raised were down,” said David Sandeman, managing director of EI Group, who collated the figures.

“These encouraging signs are feeding through to the quarterly and yearly comparisons that are generally looking positive and where there is a decline the values are small.”

Around the regions, London showed the highest returns – but more lots were sold in the north west, west midlands and south eastern home counties.

London auctions raised £131.9 million from 527 residential lots sold, while 714 lots sold raised £58.26 million in the north west; 529 lots sold totalled 3109.4 million in the south eastern home counties and 617 lots sold in the West Midlands hit £46.97 million.

The average auction sale price for a home in May was £110,287 compared with the average house price recorded at the Land Registry of £161,823 for the same month – a discounted sale price of around 32%.

Residential auctions – May 2011

Lots Offered Lots Sold Percent Sold Total Raised
L
a
s
t
M
o
n
t
h
 

May 2011 2,726 1,867 68.5% £258,905,795
May 2010 2,102 1,398 66.5% £212,568,849
Increase 29.7% 33.5% 3.0% 21.8%
L
a
s
t
Q
u
a
r
t
e
r
 

March 2011 –
May 2011
6,793 4,763 70.1% £590,735,863
March 2010 –
May 2010
6,297 4,124 65.5% £544,990,925
Increase 7.9% 15.5% 7.0% 8.4%
L
a
s
t
Y
e
a
r
 

June 2010 –
May 2011
26,153 18,011 68.9% £2,244,542,469
June 2009 –
May 2010
24,128 17,342 71.9% £2,252,743,278
Increase 8.4% 3.9% -4.2% -0.8%

Source: www.eigroup.co.uk


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Comments

Richard Greenland Richard

16:28 PM, 20th July 2011
About 9 years ago

Auction homes sold 32% cheaper than average sale price does not equate to 32% discount. Auction properties are often in poor condition and many have other problems as well.

michael fickling

11:59 AM, 7th August 2011
About 9 years ago

richard is absolutely right your comments that because average auction prices are lower does not repeat not mean that they ARE SELLING BELOW MARKET VALUE AT ALL. IN FACT IT PROVES NOTHING.iF A HOUSE IS ATTRACTIVE AND WELL PRESENTED IT IS LESS LIELY TO GO TO AUCTION.......tO MEAN ANYTHING one would have to independently asess every auctioned proerty before auction and ensure that having asesseed evry one before auction..that the ave. value was identical to the average value of all unauctioned properties.. a highly unlikely outcome.


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