Auction House Dee and Atkinson Auctions

10th March

Today I went to the auction at Beverley Race Course.

Auction Listings:

http://www.tops-property.co.uk/auctionhouse/dah/buyersguide01.htm

Of the places that sold, all were at the bottom end of the guide price.

The ones that didn't sell bidding fell short of the guide price by around 10%.

Lot 1 Guide 70k-80k Sold for £70500
Lot 2 Guide 100k-110k Sold for 111k
Lot 6 Guide 50k-60k Sold for £51500
Lot 14 Guide 125k-150k Sold for 131k
Lot 17 Guide 175k-200k Sold for 173k

It would seem that even at auction people are unwilling to buy into property as the property market is continue to drop.

The lots that did not sell may have the reserve prices set too high. I would expect the reserve prices edge lower to a point where people will buy. The bidders will call the market, and the market is being called down.

Government policy at the moment is to keep throwing money at the banks in the hope that they will start lending again.

Banks are lending, however no one is willing to take the offer of loans even if they can afford repayments and the deposit required.

The reason that people are unwilling to take up the loans is that the housing bubble is still deflating and could have as much to fall as 50% from peak 2007 prices. If you don't think this is possible, think again! It may take time, but no matter how much the government try to re inflate the housing bubble the, house prices will fall month after month until they become reasonably priced.