Did you know that properties that are sold at auction can sometimes cost 32% less than the average house price?
EI Group has estimated that approximately 1517 homes were sold at auction in November 2012 across the UK, for an average £122,131. Official home figures from the Land Registry who run one month behind auction figures put the average house price at £161,605 for October.
The pricing gap has increased between estate agent pricing and auction pricing being at 30% different for most of this year, 2012. With the homes that were sold at auction in November for £185 million, brings the approximate total for the year to 18,970 home sold at auction at an average price of £117,400.
‘As expected, the residential market witnessed large increases in the month. Over 2,000 lots were offered, up nearly 20% on last year, whilst the number of lots sold escalated to 1,517 – up 38% on November 2011,’ said EI Group director David Sandeman.
‘This large rise in residential sales helped push the success rate up to 74% – the highest monthly rate seen throughout 2012. The sizeable increases seen in the monthly figures can be largely attributed to a major London residential auction house holding their Autumn sale in November this year as opposed to October last year. That notwithstanding, the rolling quarterly and yearly figures which offer a longer term view of the market conditions also show encouraging increases across the board.’
Just over 2,056 homes were offered at auction and the sales represented 73.8% of the total.
The number of lots is up 20% on 1,718 offered in November’s sales a year ago, while the number of sales was up more than 15%.
The comparison figures differ from lender and estate agent prices as they are based on actual sales rather than asking prices or loan advances.
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