Property Auction Update - Guest Article from EIGROUP

The auction market is a great lead indicator as to what's likely to happen in the coming months in the normal buying and selling market. An increase in properties for sale and a fall in the number of people that were buying was apparent in the Spring time in the auction market, but it's taken until the summer for the same to happen in the rest of the property market.

David Sandeman, MD of EIGROUP says "Lots sold peaked in 2007 with 2009 and 2010 showing the lowest number of lots available. Within the residential market, the fall was around 30%". Kate Faulkner, MD of Designs on Property Ltd comments "This shows the auction market is more robust during bad times as the rest of the residential market fell by around 60%."

As far as buyer interest is concerned, 2006, 2007 and due to the return of savvy property investors in 2009. 2008 was one of the poorest years while 2010 was OK for buyers, who bought lots just under the long term average.

EIGROUP's Forecast for the Future of Property Auctions
David Sandeman says: "Whilst we have seen a decline across all the metrics for measuring activity in the auction market, the numbers do show that the decline has slowed down or arrested and in some cases reversed, and outperformed the wider residential market."

David concludes: "Looking forward I believe that the auction market has adjusted itself to the new market conditions and will perform relatively well going forward."

EIGROUP Auction Statistics

Source: EIGroup

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