We had the great pleasure to attend our first auction of the year at Barnard Marcus in London yesterday.
It was incredibly well-attended and although it’s too early to say what the final percentage of properties sold will be, a good number were sold and quite a number some way above the guide price.
Our first auction follows hot-on-the-heels of last week’s news that mortgage approvals are at a four-year high, thanks to record-low interest rates.
Figures revealed last week showed that banks approved 46,800 mortgages during December 2019, up 6.3 per cent from November, and 19.6 per cent higher than in December 2018.
UK Finance, the industry body that tracks seven high-street banking groups that account for roughly two-thirds of the overall market, also revealed that December marked the second consecutive month that mortgage approvals increased – following three consecutive monthly contractions.
In a nutshell this means the seasonally-adjusted number of approvals were at their highest level since August 2015. This is positive for both sellers and buyers; sellers will benefit from the rise in demand, possibly achieving a quicker sale and at a higher price, while buyers could benefit from greater choice, due to people being encouraged to sell their properties.
Buyers will also benefit from lower pricing. For example the average five-year rate for a residential mortgage fell from 2.05% in January 2019 to 1.69% in December 2019, according to data produced by consultancy Capital Economics.
Early signs for the property market in 2020 are looking positive indeed and these December figures don’t take into account a very likely post-General Election boost.
However, we cannot get carried away and must be cautious when it comes to the long-term outlook. As the government begins trade talks with the EU there is still chance for some volatility in the economy in the months ahead.
We’re attending property auctions across the country this winter and spring – check out where we will be here: https://dmifinance.com/dmi-finance-auction-calendar/
