Allsop auction observations on market trends

Loopgames

I wanted to share my thoughts about current residential auctions that are held by Allsop. I use this as a general indicator to the housing market.

What I have noticed is that for the first time this year they are holding their auction lot sales over two days for the third consecutive time since October 2010. We saw a block of two day auctions after the markets crashed from July 2008. ( There odd one day auction were an anomaly rather than the norm. Whereas before 2008 we saw one day auctions as normal.)

Wasn't that just before it all went wrong in October 2008... Not sure of actual date.

But another interesting thing we are seeing in this round of auction is the number of properties in London that being auctioned. A few of them in the area I am looking at buying, as an aside comment .

I wonder if this trend continues...if it mirrors the previous trend then we will see another financial 'dilemma', putting it mildly, by august/September.

Here is the latest auction

http://www.auction.co.uk/residential/pastAuctions.asp?T=R

socrates

My feeling is that the banks were told to hold back on putting repossessions into auctions - now they are starting to release them - especially as London and the rest of the country to a lesser degree - is seen as a 'safe haven' for foreign investors.

I will be watching the results with interest

Loopgames

Yes, they were also told to keep mortgage rates low...maybe the aritificial props will be finally removed?

That will only mean more props of the same kind to be unleashed which will have their own consequences.

Pobby

At some time books will have to be balanced. Not sure what other props they might have. Clearly the housing market has been far to high for many people.

Loopgames

Probably more QE. This will artificially keep props higher.

chucky

Pobby wrote: »

At some time books will have to be balanced. Not sure what other props they might have. Clearly the housing market has been far to high for many people.

I'm not sure if you realise this but not everyone will be able to afford to buy property and property has never been cheap otherwise everyone would have been and will be able to buy property.

socrates

Foreign investors are buying with cash

Pobby

chucky wrote: »

I'm not sure if you realise this but not everyone will be able to afford to buy property and property has never been cheap otherwise everyone would have been and will be able to buy property.

Take your point yet how come just about all of my friends bought property in the 70`s and 80`s. I am not referring to a cheap area either . About 40 miles from London, direct rail link.

Think I first bought there in 1974 with my wife. Both on not very glamorous wages. Got a grand together by gigging at week ends in a hotel band. Not exciting but paid OK.

Now something that PN often, and rightly so, mentions. Singletons. Well we had singleton friends. Again not massive earners say early career teachers. They bought. OK you may have need a lodger but there you are.

So my experience. £1,000 deposit. ( Required ).
Interview with the mortgage people. Work references. Also for some reason they wanted the date of our wedding .

A few months wait until the funds were found. As we were classed as low earners we for went MIRAS and had what was known as a council mortgage. Can`t fully recall but we were told it was the option for us. Purchase price, £9,999. Dual income after tax a tad under £3 k a year.

Sold for a £1,000 profit in 1978. Nicer property, £14.950. Used a couple of thousand to put down. Normal repayment mortgage. Joint income about £9,000.

So the effects of large inflation showed up in rising goods yet rising wages. It seemed for at least 2 more years the property market was flagging.

Hope this little tale shows a bit of the difference from today.

Looked in the net. Can`t find a graph.