A decline in distressed stock being brought to market hit the number of lots on offer at the Mustbesold.com and Harman Healy auctions last week.
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A decline in distressed stock being brought to market hit the number of lots on offer at the Mustbesold.com and Harman Healy auctions last week.
Lot volumes at Mustbesold.com’s 3 November auction at the Great Connaught Rooms, WC2, plummeted by 81%.
Some 48 lots were offered last week, against 253 in November 2008.
Last November, the firm raised £18m as 203, or 81%, of the properties sold. This year totals peaked at £2.9m after 34 lots sold, a 71% success rate.
The partnership between Graham Penny Auctions and Spicerhaart offers mostly repossessed stock, and some private sales, and was launched in September 2008 when repossessions were rising.
At Harman Healy’s 5 November auction at Kensington town hall, W8, totals peaked at £3.4m after 68% of 43 lots sold. Traditionally, distressed lots have made up between 70% and 80% of its catalogue.
Last November, 87 out of 109 properties sold, raising £10m from an 80% success rate.
According to EIG, repossessed sales have drifted downwards since their peak in Q4 2008 when 2,259 lots raised £226.7m.
In Q3 2009, 518 distressed lots sold raising £54m at residential auction – a 74% fall in revenue from £173m, as transactions declined by 77% over the period.
estelle.maxwell@estategazette.com
