Homes that sold at auction in December were 26.4% cheaper than property sold through estate agents.
According to a new report from Fathom Consulting, the discount is the largest since the bottom of the housing market in late 2008 and early 2009.
The gap between auction and estate agency prices had been around 20% since the middle of last year.
Fathom Consulting says that the discount is significant because it claims that auction prices predict what will happen in the wider market.
The index, produced in association with property portal Zoopla, was based on 389 properties sold at auction in December.
Andrew Brigden, senior economist at Fathom Consulting, said: “The sample size in December was unusually large, giving us a high degree of confidence in this new reading.
“We have not seen such a large discount, in a month where there was a good number of auction sales, since late 2008 to early 2009, in the aftermath of the collapse of Lehmans. We now expect to see bigger falls in house prices, as measured by the lenders’ indices.”
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Comments
Yeah, right! Pack in the HPC propaganda - it's boring and carries no weight on here.
I doubt you even 'know' any Estate Agents...
This is about right, as most EAs I know currently over-value at around 20-25% to get client business. After 2 months of no offers the client is politely asked to "accept reality". Not an easy game as the moment, in the current market of catching falling knives. It get's worse when the surveyors [correctly] value below the agreed offer price, p1ssing off both buyer & vendor.