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Auction review of 2009

publication date: Mar 8, 2010
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Overview of the year in propertySimply looking at the figures for 2009, one would be forgiven for thinking that 2009 has been even worse than 2008 and on the face of it, yes the number of lots and the amount raised was down 21 per cent and 11 per cent respectively. However overall the sale rate for 2009 was 75 per cent as against 65 per cent for 2008, and the figures, if one strips out repossession sales, are that the amount raised in 2009 was three per cent up on 2008!

Repossessions at auction have fallen dramatically in 2009. In 2008 we saw 8,022 repossessions being offered whereas in 2009 the number was more than 50 per cent down at 3,898. There were several reasons for this drop. After a very slow market for the estate agents in 2008, 2009 saw much more buying activity which meant that the repossessions that were offered by estate agents were selling, whereas in 2008 they were not, and therefore coming to auction. The market however feels that there is a backlog of repossessions to be sold off and at some time they will be coming to market, either via estate agents or if not, sold in the room.

2009 for the commercial market was very much a year of two halves. The first half saw the slight decline in volumes that had been in evidence since 07 continue but the second half of the year saw a complete turn around and much higher volumes being seen in H2 2009 when compared with H2 of 2008. (See Graph 1)

A similar picture can bee seen in Graph 2 for the residential sector. The decline in amount raised started in Q2 2007 and continued through to the end of 2008. From a low base of £482M in Q1 2009 it has slowly risen all year to finish at £593M in Q4 2009. This is just below the level in Q4 2008.

The declines in volumes that were seen in the early part on 2009 have been reversed and we are now seeing a steadier and growing market place. The commercial market looks set to continue it revival and there may well be an increase in the number of repossessions that come to the rooms. I believe that overall, the auction market will continue the improvement that we have witnessed over the last few months and progress will be made in 2010.