A leading estate agent has reported increased buyer activity across all levels of the housing market throughout January. However, it warns that sellers must take advantage of this enthusiasm and put their property on the market if a future supply logjam is to be avoided.
Bradford & Bingley Estate Agents' January Housing Market Review reveals that the number of new buyers registering during the first month of year was up 6% compared to January 2003, a clear demonstration of increased consumer confidence. It states that more buyers were viewing property and making offers culminating in the number of sales agreed in January 2004 rising by 25% against the same period last year.
Bradford & Bingley Estate Agents believes the high levels of activity it experienced in January contrasts dramatically with the same period last year. Managing director, Gary Verity commented: "January last year was much quieter. Possible war with Iraq sent jitters through the market and activity didn't pick up until July, leading to a very busy autumn.
"Neither buyers nor sellers were unperturbed by the rise in the Bank of England Base Rate in November. This enthusiasm has carried through into the New Year with our figures revealing encouraging activity during January. However, with an increase in sales agreed further properties are required to come onto the market to avoid a possible supply shortage."
Sellers Too Slow
Despite buyers being quick off the mark, returning in strong numbers after the festive break, new sellers have been slow to follow suit. Verity believes they may be waiting for the 'traditional' Spring start to the home-moving season.
"Although we started the year with a stronger pipeline compared to January 2003, we witnessed a slowing down of sellers putting their homes on the market in January. Many seem to be either preferring to wait to find a new property to move into before placing theirs on the market or waiting until Spring, in the hope that they will achieve a better price then. But with buyers now keen to purchase sellers are in danger of missing out. It is
also important for sellers to remember that having sold your own home can put you in a stronger negotiating position when looking for a new one."
Breaking the cycle
Verity also warns sellers that playing the waiting game could mean they don't achieve the price they are looking for. "Demand is evident in the market, so sellers should act fast to ensure that they achieve the best price for their home. By holding off until Spring we could witness a sudden flood of properties coming onto the market, which could lead to an
oversupply if buyer demand does not remain at the same level we are currently enjoying."
To ensure stable price inflation rather than a boom and bust Verity believes the market needs a steady stream of properties for sale. He concluded: "Our research confirms that confidence is returning across the country. But without a constant supply of new property this momentum will subside. Sellers will miss out on realistic offers from eager buyers who
may lose enthusiasm when faced with a lack of choice."
