Residential property auctions on the up
Despite this, the commercial property auction market continues to struggle. Although the number of commercial lots offered at auction has remained constant, the value of commercial properties sold dropped by 35.9% in July 2010 compared to July 2009.
The quarterly trends survey, produced by the National Association of Valuers and Auctioneers (NAVA) and EI Group, show that there were 3,018 residential property lots offered at auction in July 2010, nearly a 50% rise on the 2,039 lots offered in June and 2,102 properties in May 2010.
The number of residential properties offered at auction has now risen above last year’s level, with 2,744 lots offered for auction in July 2009. The percentage of residential lots sold compared to lots offered has also increased, from 60.1% in June 2010 to 65.2% in July 2010, again suggesting an upturn in the market.
Melfyn Williams, chairman of NAVA, commented: “These statistics confirm that the residential auction market has held up during the past couple of years and is now moving forwards, despite the difficulty in obtaining mortgage finance for many potential buyers.
“Our research also highlights the benefits of marketing your property at auction for homeowners struggling to sell.
Williams continued: “The auction industry however remains concerned about the levels of activity in the commercial auction market, and NAVA believes that more needs to be done to free up lending in the commercial property sector.”