Buying at auction can still offer a bargain to property investors as average sale room price of homes under the hammer are 15% less than homes on the market with estate agents.
The latest auction figures for December 2014 have been published by auction research firm EI Group.
They reveal 2,712 homes were offered for sale, which is an increase on just over 3% on the 12 months before.
Out of these, 2,008 homes were sold for an average £154,014.
Meanwhile, the Land Registry average price for a home sold in December 2014 is £177,766.
Auction prices have kept pace in monetary terms with the rise in value of the average home recorded by the Land Registry.
In December 2013, the average home was valued at £167,353 and increased around £10,000 to £177,766.
Auction prices in December 2013 averaged £144,143 and rose around £10,000 in the year to £154,014.
“In the residential sector, the gavel fell on 21,834 lots during 2014 – a 2.1% increase on 2013. More significantly, this sets a new record for the highest number of residential sales in a calendar year, surpassing the previous high recorded in 2007,” said managing director David Sandeman.
“We have also seen the amount raised at residential auctions increase throughout the year, often in double-digit percentage terms, and the yearly figures below show the total has broken through the £3 billion mark for the first time in seven years – a fantastic achievement for the industry.”
Commercial property auctions fared less well during 2014.
In December, 597 lots sold for £181 million compared with 626 lots selling for £178 million in December 2013.
“The market started brightly in the year, but growth slumped in the summer and the last few months of the year showed a fall in the number of lots,” said Sandeman.
Homes Sell for 15% Less at Auction – http://t.co/ZT2XjmFXuS
— LandlordZONE (@LandlordZONE) February 6, 2015