Auction Sales Rise as Housing Market Falters

Auction Sales Rise as Housing Market Falters

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Auction Sales Rise as Housing Market Falters

The number of homes changing ownership is to continuing to fall according to analysis by an auction sales monitor.

Residential property transactions have steadily decreased against those in the corresponding quarter for almost a year.

The Essential Information Group (EIG) took Land Registry figures for quarterly property transactions back to the third quarter of 2009 and compared the figures for 12 months later to produce the results in the graph below.

Source: Essential Information Group (EIG)

The blue bars represent transactions over the past four quarters, while the red bars show those for the same quarter a year earlier.

Land Registry transactions not only include home sales, but those gifted, transferred for no cash or inherited in England and Wales.

“Year-on-year residential sales are up by nearly 12% which contrasts the recent declines in sales recorded at Land Registry,” said David Sandeman, EIG’s managing director.

“In each of the past three quarters a decrease in the number of residential transactions is evident when compared with the previous corresponding quarter.”

While the overall number of property transactions shows a decreasing trend, the number of properties selling at auction is moving the opposite way.

In August – a traditionally quiet month for auctions – 352 homes were sold to the highest bidder for a total for £32.27 million, compared with 203 homes for £20.76 million 12 months ago.

EIG explains this is the fifth month in a row auction sales have improved year-on-year.

“ August is a quiet month in the auction calendar, with only 47 auctions held as opposed to the average of 120. However recent trends show that August’s figures are indicative of how the auction market is faring,” said Sandeman.

The number of August auction sales shows a 12 per cent year-on-year increase in residential sales.

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