"As in previous difficult times there appears to be a ‘ripple effect’ taking place, with the South of England initially experiencing more challenging market conditions, which we suspect may spread northwards over the coming months"
The month saw the most lots offered and sold, as well as a record-breaking amount of money raised. In May 2023, Auction House offered 707 lots and sold 537 of them (a 76% success rate), raising £72,650,604 – the highest-ever total for the month.
Compared with 2022, year-to-date figures increased, with the number of lots offered up 29%, and properties sold by 16%.
Auction House Managing Director Jeremy Prior said: “What these figures prove is the remarkable confidence buyers have in the medium to long-term property market. Although this is not to say there aren’t current challenges. Further hikes in the base rate are almost inevitable and the market is pricing in even more expensive mortgage rates this year.
“We have also seen a marked reduction in numbers of registered bidders – dropping by at least 30% and in some parts of the country by even more. However, this means that those bidders still buying are serious and motivated (each of them hoping that there is now less competition) and have confidence in the housing market's future.
“As in previous difficult times, there appears to be a ‘ripple effect’ taking place, with the South of England initially experiencing more challenging market conditions, which we suspect may spread northwards over the coming months.”
However, Jeremy was keen to point out that in a tricky market, the advantages of auction over private treaty really make themselves evident.
He explained: “The competitive atmosphere in the sales room (both in-room and live stream) means that once a property has reached its reserve, a leading bidder is often reluctant to relinquish their position simply for the sake of one more bid. The psychology of auction means that for the few seconds that they’re ahead, the property feels like it’s theirs.
“Meanwhile, the under-bidder feels the pressure to move into the lead, which often may only be one more bid away. With the help of a good auctioneer, this can set up an ever-changing and dynamic process, all of which drives up the price for the seller.
He concludes: “So, despite the best efforts of the doom-mongers out there, we continue to produce consistently impressive results, which – like this month – often beat previous records.”
