Healthy state of homes auction market

The auction market showed "encouraging growth" during November with the number of homes going under the hammer jumping by 12 per cent.

A total of 1,838 residential properties were offered at auction during the month, 12 per cent more than in November 2009, according to the National Association of Valuers and Auctioneers (NAVA) and property information firm EI Group.

Around 59 per cent or 1,078, of these properties were successfully sold, an 8 per cent increase on the previous November.

The latest figures build on a strong performance for the auction market seen during September and October, which are traditionally its busiest months of the year.

Around 3,454 residential properties went under the hammer in September, nearly 25 per cent more than in the same month of the previous year, while 2,716 homes were auctioned during October, up 18 per cent on 12 months earlier.

Both months also saw year-on-year increases in the proportion of residential properties that were sold.

The group said the market was showing "encouraging growth" through the year-on-year increases, adding that its seasonal nature, meant month-on-month comparisons tended to be misleading.

The figures bode well for the housing market, as what is happening at property auctions is often seen as a leading indicator for the housing market as a whole.

But while the residential auction market has picked up in recent months, the commercial one has shown a decline.