Buyers save 33% shopping for homes at auction

Homes at under the hammer at auctions cost 32% less than the average house price.

More than 1,500 homes sold at auction in November across the UK for an average £122,131, reckons auction price tracker EI Group.

Official home figures from the Land Registry – which run a month behind the auction figures – put the average house price at £161,605 for October.

The gap has widened lately between auction and estate agent prices – for most of the year the figures were around 30% apart.

A total of 1,517 homes were sold at auction in November for £185 million, bringing the total for the year to 18,970 homes shifting at an average price of £117,400.

“As expected, the residential market witnessed large increases in the month. Over 2,000 lots were offered, up nearly 20% on last year, whilst the number of lots sold escalated to 1,517 – up 38% on November 2011,” said EI Group director David Sandeman.

“This large rise in residential sales helped push the success rate up to 74% – the highest monthly rate seen throughout 2012.

“The sizeable increases seen in the monthly figures can be largely attributed to a major London residential auction house holding their Autumn sale in November this year as opposed to October last year. That notwithstanding, the rolling quarterly and yearly figures which offer a longer term view of the market conditions also show encouraging increases across the board.”

Just over 2,056 homes were offered at auction and the sales represented 73.8% of the total.

The number of lots is up 20% on 1,718 offered in November’s sales a year ago, while the number of sales was up more than 15%.

The comparison figures differ from lender and estate agent prices as they are based on actual sales rather than asking prices or loan advances.

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