House-Hunters Hit Four Year Low
Agents averaged just 282 buyers on their books, compared with 326 in September, according to the latest figures from the NAEA (National Association of Estate Agents).
This was considerably less than the 360 registered buyers last October, but despite this the NAEA insist that falling buyer numbers are typical of the pre-Christmas seasonal slowdown and not just a result of a cooling market.
Property numbers have also declined since September, with an average 65 homes on agents’ books compared to 80 the month before. However, this was marginally up on year-ago levels when there were an average of 64 properties for sale.
Buyers’ Market Turnaround
Further evidence that both buyers and sellers are steering clear of the market was shown in October’s low transaction levels, says the NAEA.
The average of just ten sales per agent was slightly down from September’s average of 11, but significantly less than the 14 recorded last October.
But as a result of falling activity, buyers are finding price negotiations increasingly going their way with the gap between selling and asking price widening to 4.2 per cent.
This illustrates the gradual turnaround to a buyers’ market, as the gap was 3.9 per cent in September, and just 3.1 per cent last October.
First-Time Buyers Increase
In response, first-time buyers increased their market share as prices begin to fall from their interstellar highs. First-timers claimed a 9.2 per cent market share in October compared to 8.8 per cent the previous month.
However, there is still a long way to go before they reach year-ago levels when their proportion of property purchases reached 16.4 per cent.
Commenting on the figures, NAEA President, Stewart Lilly, said: “The market place at present is experiencing a seasonal slowdown, which you would normally expect at this time of year.
“However, there are potentially delicate times ahead – particularly if the government presses forward with the final phase plans for home information packs too soon.
“All consumers need a period of stability in order to build up their confidence. We are pleased to see that the Bank of England has suggested it will be lowering interest rates over the coming months, which should go some way to restoring confidence.”
FindaProperty.com