Douglas Sleaper, Group Sales Director of Badger Holdings, parent company to Townends & Regents estate agents, comments: “we are now seeing real improvements in the number of sales that are agreed and proceeding to survey during the first two months of 2009. Buyer enquiries within our offices are actually up 8% on this time last year and whilst viewings are down by 13% this is largely due to greatly reduced numbers of property listings as new instructions are down 32% on the levels of 2008.
Against that backdrop, our sales transaction numbers are running at 80% compared to the first two months of 2008 and are up in fact up 7% over the average for the whole of the year. This represents a significant increase on the last quarter of 2008, in fact an improvement of 90% in sales numbers and, whilst I don’t underestimate the challenges that lay ahead in unemployment numbers, it does lead me to cautiously suggest that the decreasing rate of price deflation and the increase in sales numbers may signal that the worst of the market is behind us.
The buyers we are selling to are also varied and not so driven by necessity in making a move. We are dealing with increasing numbers of first time buyers attracted by the low interest rates and reduced prices and they are competing with investors who feel that property now represents a better place for their money than the bank or stock market. In addition, we are seeing a significant number of people returning to the market having sold their property in the last 18 months but, perhaps the most interesting development is that movers deciding to trade up have made up 17% of the sales made so far this year. This type of discretionary move was far rarer in the second half of last year.
As a result of the low numbers of new houses for sale, in certain cases prices are also firming up as the lack of choice creates competition amongst buyers for those properties deemed to offer the best value for money, creating multiple offers on properties. Whilst this is not necessarily a desirable sign, there is clearly real pent up demand within the market, but I would stress, until the availability of mortgage finance has improved, it will not create the conditions for a sustained recovery in the housing market with all the benefits that brings to the wider economy.”
