"The atmosphere in the auction rooms changed enormously in the closing months of 2008. We held our last auction of the year in December, and in terms of number of properties sold it was our most successful for 18 months. Over ¾ of the lots sold, and guide and reserve prices were being exceeded.

 There are three main reasons for the buoyancy in the sales room:

 1. There are a lot of people who had their money in traditional savings- earning 5 - 6%, who could be passive and still achieve a reasonable return on their investments. As interest rates have plummeted, so those same people have seen their returns dwindle, and they have realised they can no longer be passive and are taking that money and investing in property. Despite the turbulent climate, they realise that property is still a safe long term investment, and in the short term they can make decent money from renting them out.

 2. Sellers have finally realised that they need to be realistic in their expectations of sale prices, and are setting reserve prices at logical levels. Sellers traditionally lag 6 months behind market sentiment and the ‘real' world in their thinking, but they are finally waking up to the fact that it's tough out there!

 3. There is a good supply of high quality stock, and a significant number of people who have property they are very keen to sell.

 The buoyancy doesn't mean that prices are being driven up, but at least sales are happening.

 So what are Grahams predictions for 2009?

 If you're trying to sell at the moment, my advice would be to do so sooner rather than later.

 If you're buying, you should get yourself in a position to do so as quickly as possible. Doors are currently open that you may not see again in your lifetime. Prices are currently 25- 30 % below what they were in summer 2007, when we first noticed the chill winds of change were blowing. I remember the auction in July 2007 as if it was yesterday. It was the first time investors stopped buying, and started telling me they felt prices would be lower by the end of that year.

 The biggest winners at the moment seem to be owner occupier buyers- ie people buying a home for themselves. There are a lot of people who need to sell quickly, and buyers are either getting the house they wanted at a large reduction- sometimes up to 30%- or a much better house than they thought they would be able to afford.

 For investors, the buy to let numbers are making sense again, with stable rental income, but lower purchase prices and  interest rates.

 All in all, the opportunities are there to be grabbed".

Graham Barton, West Country Property Auctions

"Some current auction properties are at the bottom of the barrel where prices are concerned. They just aren't going to get any lower."

Christopher Coleman-Smith, Auctioneer Savills.

"Some of the stuff we are seeing is an absolute giveaway.  Banks and building societies are so focused on getting rid of repossessed properties that they are just going through the motions of getting the best possible prices. But actually setting the reserves at unbelievably low levels. They're focused on getting rid of the properties and getting money into their account before the year end, so they are selling at a price that the market will absorb without second thoughts. Recently we sold a modern 4 bedroomed detached house in Derby for £89,000 at auction. It had been previously on with an estate agent for a very realistic £159,950.I reckon we've got another 6 to 12 months of these bargains and then no more."

Graham Penny, Graham Penny Auctions

"