Residential and commercial auctions show encouraging growth

The quarterly trends survey, produced by the National Association of Valuers and Auctioneers and EI Group, shows that 1,838 residential properties were offered at auction in November 2010, equating to a 12% increase when compared with November 2009.  1,078 lots were sold, an 8% increase from November last year.
 
However, the commercial auction market experienced a decline, with both the number of properties offered and sold at auction dropping from November 2009 – although the value of those properties increased during the period.  The number of commercial lots sold during November 2010 was down to 174, compared with 228 in November 2009.
 
In comparison September and October – months traditionally associated with a high level of activity in the auction market – saw a considerable rise in the number of residential property lots both offered and sold.  The research showed that:
 
- 2,716 residential property lots were offered at auction in October 2010, compared with 2,304 lots during the same month in 2009; an increase of around 18%

- 3,454 residential lots were offered in September 2010, up from 2,770 in September 2009; an increase of nearly 25%

- Commercial property remained buoyant, with 799 lots offered at auction in October 2010; compared to 734 lots in October 2009, an increase of around 9%

- September’s figures were similarly healthy, with a 5% increase in the number of commercial lots sold at auction when compared with the same month in 2009
 
As is usual in the auction market, August saw only a handful of auctions held across the country, with a low level of activity at those which did take place. This is reflected in the statistics.
 
Melfyn Williams, Chairman of NAVA, said:

“After a quiet summer, the residential and commercial auction markets were resilient and are now experiencing broad, if cautious, growth. Now is an excellent time for investors and buy-to-let specialists to invest in property through the auction market, as money is likely accrue faster than if it was left in the bank.
 
“As we move into 2011, we would expect property prices at auction in both the commercial and residential markets to improve albeit slowly.  The market continues to show signs of forward motion into 2011.”