The Year Ahead….
Welcome to Surelock Network Auctions’ first Newsletter! We want to present a combination of our own outlook and industry news on important topics within the property auction business. With this regular commentary we want to keep you updated with news that is interesting and informative.
How do bidders feel at property auctions?
As the New Year has started we have been thinking about the upcoming Surelock Network auctions. As we offer physical auctions – by which we mean traditional auctions, we aren’t planning on announcing a warm-up routine before the bidding starts(!) – and online eauctions, there’s a lot to think about!
My thoughts often turn to how potential buyers and investors feel when they attend an auction at which they plan on making a purchase. Are they feeling confident after having done lots of research and pinpointed the one or two properties they want to buy? Or, have they made a last minute
decision to come along with hopes of bagging themselves a bargain?
Even among experienced auction purchasers it can be easy to get carried away in the bidding frenzy. Having someone there with you can help you keep a clear mind and any pre-set limits firmly in place.
And it’s not just the bidders and potential buyers that can get caught up in the excitement, the auctioneer can feel and help create a real buzz in the sale-room. If you haven’t had the opportunity to experience an auction room on sale day, I highly recommend you go along to one – why not come
to one of our next auctions in London on February 25th or in Birmingham on March 2nd?
New Year, new expectations
As the New Year has begun so economists, lenders and estate agencies have published their expectations for house prices during the year.
Looking at an average across Halifax, Nationwide, IHS Global Insights economists, the Council of Mortgage Lenders and online estate agency Rightmove, growth of around 6% over the next 12 months is the forecast. That’s less than the increase of around 8% in 2015 but higher than forecasts
made a year ago.
House price expectations play a part in all property valuations and final agreed sale prices which means it’s useful to keep abreast of industry views – and any actual house price rises and falls throughout the year.
So, while properties at auction can often be purchased at below market value, they aren’t immune to the increases experienced across the wider market.
Property auction sales proved popular in November
Keeping on the subject of auctions, the latest data from the Essential Information Group shows that across all auctions in the UK in November 2015 – the most recent month the data are available –75.8% of offered lots were sold. That was the highest percentage of lots sold since July last year and compares with 73.7% in October and 71.7% in November 2014.
Those figures suggest that auction activity ended 2015 on a high note. Let’s hope they begin 2016 in a similar vein!
Well, that’s it for our first Surelock Network Auctions newsletter! We hope you enjoyed our thoughts on issues affecting the property auction business at the moment. If you want to keep up-to-date with Surelock’s auction dates and news and views, take a look at the blog section of our website. And, watch this space to find out about property market views you can listen to on our Auction Breakthrough podcast, which will be available on iTunes soon.
We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.