NAEA research has revealed that the number of house buyers on estate agents' books is currently at its lowest level for the past four years.
While the Association concedes that the current slowdown is typical of the festive market, it believes that this, coupled with reduced stock and less sales agreed, will cost the market dearly going forward into 2008
The percentage difference between asking price and sales price also widened in October to 4.2 per cent, which is an increase on September’s figure of 3.9 per cent, and October 2006’s figure of 3.1 per cent. This widening gap reflects that it is fast becoming a 'buyers market' again.
Good news for the market is that first-time buyers increased their share of the market from 8.8 per cent in September to 9.2 per cent in October in a positive step forward. Prices have calmed down in selected areas giving some first timers a renewed enthusiasm.
The Association believes that with more competitive mortgage schemes available, first-time buyers have the opportunity to potentially further increase their share of the market in the future.
NAEA president, Stewart Lilly, said: “The marketplace 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. The removal of homeowners’ right to first day marketing – currently planned for January – is, by far, the biggest threat to stability. We hope the government recognises this and makes the necessary changes with the utmost urgency!
“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.”
