COVID-19 Update

Average selling price at auction soars during lockdown

Auction House - operating as Auction House Loveitts in Coventry and Warwickshire - is reporting that the average price of its properties across the country during lockdown has rocketed by over a third.

The figure has soared from £116,145 in July 2019 to £159,359 in the same month this year - an increase of 37%.


 Commenting on the national picture, Sally Smith, Auctioneer and Director says that the sharp rise – which became noticeable from May of this year onwards - is down to three contributory factors.

 

She explains: “Firstly, it’s the simple fact that there has been a huge upsurge in buyers looking to purchase property this way. The competitive bidding nature of auction is enhanced still further by this larger cohort of buyers – which means that auction lots are achieving even higher prices.

 

“Secondly, we seem to be attracting more properties from higher price brackets to offer for sale. We have opened the door to a group of sellers who wouldn’t previously have considered auction rooms; we are listing those higher-ticket properties and are hammering them down successfully.

 

“Finally, the unique combination of our regional sales teams and the convenience of remote bidding during lockdown – by phone, proxy or internet - has produced a superb environment for selling to take place. Our local presence means that we have boots on the ground to carry out viewings and staff with an unparalleled knowledge of the local property market to ensure that we get the pricing absolutely right.”

 

In July Auction House reported 327 lots sold from 393 offered at the very high success rate of 83%, with sales in the month of over £52m (£52,110,576) – ahead of last year’s total (£50,280,000).

 

Sally Smith added: “The auction process is just as effective and successful as it has been in the past; in fact, the market is rebounding towards its pre-pandemic levels. Admittedly, selling by auction has changed during Covid. With gatherings prevented, the switch to remote bidding and growth in demand has been a big transformation and a huge success.

 

“Auctions were ballroom events with big audiences and we have no doubt that in the future they will be again. But for now – and until the pandemic is over – auction sellers and buyers will be brought together by highly-effective technology-supported solutions. And our latest results show they are working exceptionally well.”