Essential Information Group (EIG), a respected auction data company, has reported an intriguing trend: a notable surge in properties being listed for auction. However, the optimism from this surge is tempered by the fact that the expectations of sellers may be outstripping what buyers are willing to pay.

The Numbers at a Glance

Although August is traditionally viewed as a month with fewer auctions due to family holidays and other commitments, 2023 has bucked the trend. According to EIG’s September newsletter:

• There was a 47.9% increase in the number of lots offered in August 2023 compared to August 2022.
• This increase isn’t solely attributed to one sector: residential lots offered rose by 51.5% and commercial lots by 17.3%.
• Despite this, there was a drop in the percentage of lots actually sold.

Deep Dive: What Do the Figures Say?

National Overview

Comparing the figures year-on-year and over a period:

• Lots offered in August 2023: 1,773 (a 47.9% increase from 1,199 in August 2022).
• From September 2022 to August 2023, there was a 20.9% increase in lots offered.
• However, the percentage of lots sold in August 2023 was 63.7%, down by 6.2% from the previous year.
• Revenue for August 2023 stood at £180.3M, a rise from £140.1M the previous year.

Residential vs. Commercial

• Residential: While lots offered shot up, the percentage of lots sold declined by 7.9% to 64.4%.
• Commercial: A slight improvement with an increase of 10.2%, settling at 56.4% for lots sold.

David Sandeman, the head of EIG, stressed the importance of realistic pricing. He observed that the current market conditions are challenging, with many properties being withdrawn before auction due to lack of interest at the set guide price.

A Look at Regional Variations

Regions like Northern Ireland and Scotland displayed contrasting trends:

• Northern Ireland: A significant 55.3% increase in lots offered but a 29.5% decrease in the percentage sold.
• Scotland: A 33.9% increase in lots offered and a 30.2% increase in lots sold.

The data contradicts the general belief that August is a slow month, indicating an active yet selective market.

Spotlight on Specific Regions

To understand the broader picture, it’s crucial to examine trends in various regions:

• East Anglia: There was a 43.0% increase in lots offered, and a 31.0% increase in lots sold.
• East Midlands: Lots offered decreased slightly by 0.7%, with lots sold decreasing by 6.9%.
• London: Lots offered decreased by 3.9%, and lots sold declined notably by 16.0%.
• North-East: Lots offered increased by 15.1%, with lots sold seeing a 25.6% rise.
• North-West: There was a 20.4% increase in lots offered and a 13.4% rise in lots sold.

Concluding Thoughts

For potential investors and sellers, the current auction environment presents both opportunities and challenges. The substantial increase in lots being offered shows that many are keen to sell. However, the decline in the percentage of lots sold suggests that buyer sentiment is more cautious.

For sellers, it’s pivotal to set realistic expectations and be guided by market dynamics. Buyers, on the other hand, might find unique opportunities, especially in regions showing a higher percentage of sales.