There is growing evidence that activity levels in the property auctions market is starting to improve, following a recent slowdown, caused in part by a reduction in the number of lots being offered under the hammer, according to Jamie Cooke at IAM Sold.
Despite the drop-off in the volume of properties offered for sale nationwide, IAM Sold achieved a sale rate of 80% at its recent West Midlands’ auction, which shows sales remain competitive with plenty of buyers still active, according to the auction director.
Reflecting on the company’s last sale, which raised almost £29m capital value across 259 auction sales throughout the UK, Cooke said that activity levels had picked up, reflecting the fact that both sellers and buyers see auctions “as an increasingly viable way of transacting property”.
Of the 259 auction sales, 37% were sold above reserve. The highest was East Parade, a property in Whitley Bay, which sold for £114,000 - £50,000 over reserve thanks to 32 viewings and an in-room bidding war.
But 64% of the total sales were via online auctions, with the majority of buyers purchasing for owner-occupation, while 32% bought for buy-to-let, and 16% to renovate and re-sell.