More urgency being seen among sellers at property auctions

Property auction lots are up by over 50% year on year, according to newly released figures from EIG

Related topics:  Auctions,  Property,  house hunters
Property | Reporter
11th October 2023
Online Auction 926
"There is a noticeable shift in the market with an increased urgency from sellers who want the security a sale by auction brings."
- Stuart Collar-Brown - My Auction

My Auction has seen a significant uplift in lots coming to market as they see more urgency from sellers looking to sell their property.

The latest data from EIG Property Auctions shows a surge in the number of residential property lots coming to market with a 51.5% increase from August 2022 to August 2023. Data from My Auction shows that since schools went back at the beginning of September, there has been a substantial increase in call volumes from sellers, both directly, and as part of its network of independent estate agents across the UK from homeowners.

The increase comes as sellers look for a quicker way to sell their properties, with more security and certainty that the sale will go through, given the current uncertainty in the market. The number of residential lots sold year on year has increased by 39.7%, according to EIG data, with total raised increasing by 29.4%. Conversely, Zoopla data from traditional treaty sales also shows that the number of housing sales expected to complete during 2023 is on track to be 21% down on 2022 and the lowest number of sales since 2012.

My Auction says that a big reason for the stagnant market right now is that sellers’ expectations have not adjusted quickly enough to the current market conditions so are pricing their properties too highly to attract buyers.

Data from Rightmove supports this and shows that some sellers have been too optimistic with their pricing or have been given unrealistic price expectations from agents. The data showed that the proportion of properties sold through private treaty methods that have had to make at least one price reduction is 36.3% - the highest recorded since January 2011.

Stuart Collar-Brown, founder and director of My Auction, said: “We’ve seen a huge increase in enquiries from sellers, all keen to secure a sale on an existing property already on the market. There is a noticeable shift in the market with an increased urgency from sellers who want the security a sale by auction brings.

“These sellers are looking to property auctions for security and certainty in the current and unpredictable market. With more rate rises expected and Christmas fast approaching, taking the auction route is becoming far more popular than we have seen in the last three to four years.

“One thing sellers must take into account is what the market is telling them in the run-up to the auction. The harsh reality of the current market is that if the market deems the price to be too high within the first 7-10 days of marketing, sellers must accept the market conditions, re-adjust and go again.

“If there are buyers willing to pay on or close to the guide price on a property but offer the guarantee of an immediate exchange of contracts with a non-refundable 10% deposit, sellers should seriously be considering taking these offers. If they don’t take it now, in three months’ time, they could be 10% or more less, based on what we are seeing from buyers right now.”

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