Auctions pick up in Wales

Auctioneers working on behalf of estate agent Peter Alan sold all lots in an hour at an auction in Cardiff, a welcome sign that the Welsh housing market may have turned a corner.

The success of the auction contrasts markedly with one held a year earlier by the same firm, where not one single property of the 60 lots available attracted any interest.

At the latest auction 16 lots were sold, with six going for more than 25% above the list price. One lot sold for double the listed value.

Peter Alan’s managing director Mick McGuire said:

“There was a lot of demand in the room and quite a bit of the activity came from first-time buyers.

“There were 14 sold in the auction and two outside the room. It was a 100% strike rate and you can’t get better than that.”

Around 150 interested parties attended the bidding at the Village Leisure Hotel, Whitchurch.

McGuire said: “Last year we had an auction that really did struggle when the credit crunch was still having an effect. Compared to this it shows that one year on the market has started to recover.

“Even two years ago there were few first-time buyers around – 15% of our buyers in 2007 compared to 35% now.

“But I think that the auction showed this group have benefited from the Stamp Duty holiday as all the homes bar one were below the £175,000 threshold. Prices are cheaper, interest rates are lower and in general properties are more affordable.

“First time buyers are back on the market and it feels more healthy.”

Final offers at this week’s auction ranged from £32,000 to £225,000.

Auctioneer Melfyn Williams said:

“Up to four people were bidding on each one – this is certainly better than last year and positive news.”