"Understanding the intricacies of relisted properties and their impact on the market is crucial for navigating this evolving landscape"
- David Leary - Essential Information Group
As we conclude 2023, the property auction market reflects a year of twists and turns, marked by fluctuating house prices, declining success rates, as well as a surge in entries.
Essential Information Group's conclusive edition of Property Auction Insights for 2023 unravels the mysteries surrounding withdrawn and unsold properties, aiming to provide crucial insights for buyers, sellers, and investors.
David Leary, Director at Essential Information Group, emphasises: "The dynamics of the property auction scene are undergoing significant changes. Understanding the intricacies of relisted properties and their impact on the market is crucial for navigating this evolving landscape."
In examining national trends, a notable increase in the number of repeat entries is revealed, nearly doubling since 2018. This shift is attributed to the evolution of auctions, particularly the transition to online formats, providing increased flexibility.
Lowering the guide price also does not significantly impact the eventual sale price, providing reassurance for sellers. Analysis shows that repeat lots tend to conclude at on average 100% of the original guide price, emphasising the importance of aligning guide prices with market conditions.
The average time between the first and last appearance at auctions has significantly decreased, from nearly 9 weeks pre-Covid, to only 5 weeks in recent years. The adoption of online auctions has streamlined the process, fostering increased satisfaction among both vendors and purchasers.
David comments on the findings: "The accelerated auction cycle and the shift to online platforms have positively impacted the auction landscape, creating efficiencies without causing a surge in overall entries."
He adds: "This shift in the property auction dynamics is noteworthy. The surge in relistings and increased timescale are indicative of a changing market, especially as seen over the past 12 months. The prolonged timeline may indicate strategic decisions by auctioneers or practical considerations like delays in legal pack processing. It's a multifaceted scenario that warrants close observation."
In conclusion, the property auction market is undergoing rapid transformations, emphasising the
need for adaptability. As the dynamics shift towards a buyer's market, Essential Information Group's insights empower stakeholders to navigate with confidence in this dynamic and evolving landscape.
