The Midlands might be at the centre of the property market in geographical terms, but how representative is it, or otherwise, of the wider market? In this report we will look at some trends from the residential auction market here and take in some comment from those involved in it on a regular basis.
Firstly, let us take in a few auction facts and figures from Essential Information Group to help set the scene. Their latest auction returns suggest that the residential auction market both nationally and regionally slowed somewhat over the first quarter of 2013, with falls in lots offered and sold in many cases. However, the EI Group's managing director David Sandeman points out that this may be due to a major auction house holding their spring sale in April this year rather than March, together with the fact that 2012 was an exceptionally busy year for the auction market.
EIG's March figures show that nationally 5,590 residential lots were offered in 1Q 2013, a 6.2% fall in volume compared to 1Q 2012. Of these 4,307 sold, there was a slight percentage rise compared to the previous year. The total amount of money raised was approximately £524m, representing a fall of just 2.4% by value compared to 1Q 2012.
Now to look at the Midlands region specifically: In the East Midlands 428 lots were offered in 1Q 2013, a 5.1% fall compared to 1Q 2012. Of these 329 or 76.9% sold, which represents a slight 2.3% rise in the percentage sold. The total raised was approximately £31m, which represents a rise of 13.8% by value. In the West Midlands 481 lots were offered in 1Q 2013, a notable 23.3% fall compared to 1Q 2012. Of these 364 or 75.7% sold, which represents a slight 1.9% fall in the percentage sold. However, the total raised was approximately £33m, a significant 20.3% fall over the same period in the previous year.