Given the current economic and political climate, it comes as no surprise to see that during the first half of 2019, there have been significant falls in auction lots offered, sold and amounts raised, highlighting the challenging market conditions of recent times.
In the year to the end of June 2019, the number of lots offered at auction fell to 30,184, 8.6% less than the same period a year earlier. The number of lots sold at auction fell to 22,373 from 25,119 a year earlier, representing a 10.9% fall.
However, the auction sale rate has remained stable and largely comparative to the long-term average throughout these challenging times. For the year to the end of June 2019, the overall sales rate stood at 74.1%, just 2.6% less than the same period a year earlier.
This reinforces the sentiment that suitably priced stock will still attract competitive bidding in the auction arena.
Residential lots offered and sold fell by 7.5% and 9.5% respectively over the period, while residential receipts totalled £3.2bn, down by 13.7%. Commercial revenues fell by 19.7% over the same period.
But while a review of activity in the auction room shows a decline in lots offered, sold and amount raised for the first part of this year when compared with same period last year, the same comparison in the online auction space shows the complete opposite.
We have seen in excess of a 20% increase in the number of lots sold via online auctions with the vast majority of them being sold on a conditional sale basis as opposed to an unconditional sale basis.
Much of this growth has come from the continued take-up of online auction platforms by estate agents to sell properties belonging to motivated vendors.
Many online auction sites offer conditional auction sales which give buyers an additional four weeks to finalise their due diligence and organise their finance. These platforms have great appeal to vendors selling to private individuals who want to live in the properties they buy.
We expect that the growth in online auction sales is set to continue.
David Sandeman is founder of the Essential Information Group
