The prices paid for property at auction still have a long way to fall, but the outlook for the housing market is not quite as dire as a few months ago.
New research suggests that in recent weeks prices of residential properties sold at auction were 25% lower than the same home could have achieved had it been sold through an estate agent.
The 25% discount at property auctions is historically large, but better than at the turn of the year. Then a home that would normally sell for £100,000 would have fetched only £60,000 at auction, according to the research by Fathom Financial Consulting and Zoopla, the property website.
Along with today’s survey from the RICS, which shows a large majority of estate agents reporting falling house prices in April, the results suggest there will be a further decline in property prices, although the bottom is easier to envisage than it was at the turn of the year.
Financial Times, The Times