Repossession Lots Sales Increase in June

The latest data revealed suggests that the number of houses and apartments sold at auctions in the United Kingdom has increased almost by 67% last month as homebuyers were looking for cheaper deals.
Another fact that proves that the UK housing market might be reaching its bottom lies in the statement of the Countrywide Property Auctions, which says that 79% of all properties that went under the hammer in the first half of June 2009 were sold; the figure compares to 49%, sold in June 2008.
However, people who plan to benefit from cheap properties, which they expect to be sold at auctions, have to remember that the number of houses and apartments that go on auction sales has reduced by 43% in the course of the past year.
The information finds its proof in the data revealed by Essential Information Group (EIG), which also shows a decrease in the number of repossessed lots from 1,674 in the 1st quarter of 2008 to 954 in the same period of 2009.
Mr. Chris Coleman-Smith, Savills head of auctions is determined that current situation is different from to the one witnessed the 1980’s and 1990’s, which were marked by an avalanche of repossessed houses. Mr. David Sandeman, EIG managing director, confirmed that repossession lots have become rare, which can be explained either by a decrease in banks’ repossessions or by the fact that banks keep repossessed properties with estate agents.
It is interesting to note that properties sold at auctions are usually priced 10-12% higher than their reserve prices, which represent the seller’s lowest asking price. Property market analysts are determined that the decrease of mortgage interest rates resulted in the ability of some cash-rich borrowers to avoid repossessions.