Auction Prices Soaring.... Setting records above guide price

HAMISH_MCTAVISH

Homes sold at auction are achieving record sums above the guide amounts set by valuers as lower property prices have brought about a bidding war among bargain-hunters.

Countrywide, Britain’s biggest estate agent, sold a two-bedroom cottage near Truro in Cornwall for 109 per cent above its guide price of £60,000 in September, almost beating its previous record set in March of 110 per cent above the guide price of a two-bedroom bungalow, also in Cornwall.

Allsop, another auctioneer, has also achieved its highest margins above the guide in recent months, as confidence grows that the market has bottomed out.

Housing economists believe that house prices were at their lowest in March and April, before beginning their recent climb.

http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6875289.ece

More good news. :beer:

And aren't auction prices the preferred measure of "real value" according to Bears?

Or will that change now that auction prices are soaring....:rolleyes:

Really2

HAMISH_MCTAVISH wrote: »

http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6875289.ece

More good news. :beer:

And aren't auction prices the preferred measure of "real value" according to Bears?

Or will that change now that auction prices are soaring....:rolleyes:

To be fair I have always said auctions are an "extreme view" of the market. (always has been always will be)

But for sure I can remember a lot of bears were saying they are the best indication of prices.
So we could well see a bit of back tracking

HAMISH_MCTAVISH

Really2 wrote: »

To be fair I have always said auctions are an "extreme view" of the market. (always has been always will be)

But for sure I can remember a lot of bears were saying they are the best indication of prices.

So we could well see a bit of back tracking

:rotfl:

Indeed.

Judging from some of the posts lately, I think they've now moved past denial and into the fear stage.....

I'd almost feel sorry for them, but as we all put up with so much abuse last year I think I'll just continue being smug instead.:beer:

Really2

HAMISH_MCTAVISH wrote: »

:rotfl:

I'd almost feel sorry for them, but as we all put up with so much abuse last year I think I'll just continue being smug instead.:beer:

I tell you what Hamish, I thanked that for the pure reason no one one here loves winding up the bears more than you.

I am sure if you knew where some of them lived you would post details of recently sold houses to them.

IveSeenTheLight

Really2 wrote: »

I am sure if you knew where some of them lived you would post details of recently sold houses to them.

I doubt you'll get that information.
It would take away their ability to say "But houses are still down 25% in my area" :rolleyes:
It may be true for some, but it seems everyone saying house prices must still fall live in the areas worst affected.

Unless they all live on the same street

Thrugelmir

Though lowering a guide price has the effect , like all good marketing , of sucking the punters in. A few well priced properties in an auction catalogue give the perception of value. The auctioneers know the particular property will sell above its guide. The punters flock to the auction, are disappointed not to win this property. Then start bidding on something they've never even seen the inside of. Their second choice property. In the belief that they are getting a bargain.

Much in the same way the journo who pulled the article off the newswires has done.

julieq

That could possibly happen when buying furniture or paintings, though in my experience auctioneers don't behave like that, it is more important to them to give a fair valuation to induce sellers to sell in the first place. But it's not credible to claim that this is normal behaviour for anyone buying a house.

If you have actual evidence that auctioneers are manipulating purchasers in the way you're suggesting then maybe it would be a good time to present it, otherwise it's really just conspiracy theory.

Really2

Thrugelmir wrote: »

Though lowering a guide price has the effect , like all good marketing , of sucking the punters in.

But you could say they "over value" some to try to get more money for them.
You would then just dismiss all the "fell 50%" remarks from last year also.

Thrugelmir

Really2 wrote: »

But you could say they over value some to try to get more for them.
You would then just dismiss all the "fell 50%" remarks from last year also.

No, as the guide is the minimum price the auction house property will sell at, (in the auction room).

Overpriced property won't sell. There are normally reasons for the property going to auction rather being sold through other avenues.

The reserve price is agreed between the auction house and the vendor.

chucky

HAMISH_MCTAVISH wrote: »

http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article6875289.ece

More good news. :beer:

And aren't auction prices the preferred measure of "real value" according to Bears?

Or will that change now that auction prices are soaring....:rolleyes:

this is just blow to that sinking ship they call a HPC - it's tragic :rolleyes:

zappahey

Thrugelmir wrote: »

No, as the guide is the minimum price the auction house property will sell at, (in the auction room).

Surely that would be the reserve price, rather than the guide?