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Category: house prices
Figures released by leading auctioneer, Essential Information Group (EIG), reveals that both commercial and residential property had a quieter March for 2024 than typically expected.
Overall findings for March 2024 vs March 2023
Lots offered in March 2024 were 9.2 per cent lower than lots offered one year prior, while lots sold over the same period decreased by 7.4 per cent, too. While this shows a definitive pull-back of activity in the auction market, it may indicate more confidence in existing tenanted properties.
Residential property findings for same period
Residential lots offered in March 2024 were 8.2 per cent lower than lots offered one year prior. While residential lots sold in March 2024 were 6.5 per cent lower than the amount sold one year prior.
Commercial property findings for same period
Commercial lots offered in March 2024 were 15.9 per cent lower than lots offered one year prior. While commercial lots sold in March 2024 were 14 per cent lower than the amount sold one year prior.
This is a similar trend to residential lots at auction, where lots offered decreased by a greater amount than lots sold.
Comments from industry
David Sandeman, the head of EIG, has said:
Reviewing the quarterly figures, the overall market has been bolstered by the buoyant start to the year, seeing overall growth of 9.6% in lots sold, and 11% for the residential sector.
The commercial arena in early 2023 saw a boom in portfolio sales which bolstered the number of sales achieved, however it since has become subdued due to investors now holding onto well-performing tenanted properties unless there is a need to sell.
For the stock that does come to market, success rates remain consistent, showing there is continued interest in the market and opportunities to be had for the right properties and individuals.
Overall, the regions performed well during the first quarter, with only minor fluctuations in the metrics overall. The North East and East Midlands, prime locations for auction stock, continue to outperform other regions in terms of growth in sold lots. Scotland and Northern Ireland have experienced more of a struggle for stock volume and success rates, so it is worth keeping a close eye on how the regions react going into Q2.
With the ongoing uncertainty over inflation and interest rates, the auction market appears to be taking the opportunity to breathe and settle into what is likely to be a new normal over the coming months. Ensure you are subscribed to our newsletters to stay up to date with the latest news and figures.
Commercial Trust can help with auction finance
Purchasing at auction can be a good way to secure below market value properties, which with modest refurbishment can be flipped or rented out and offer very favourable yields.
Talk to our auction finance experts ahead of sale day, to organise the funds to settle with the auctioneer after the hammer falls. Call free or enquire online.
