The number of house hunters registered with estate agents increased from 290 in June to 292 in July. The past three months as a whole represent the largest three-month demand in property since September-November 2007 and are likely to represent the fact that people believe lower house prices can deliver a bargain, but also consider the market to have bottomed out.
The number of sales agreed per agent decreased from an average of ten in June to nine (8.6) in July but this is still more properties per branch than for any month in 2008. This drop can be explained through the traditional cyclical market downturn in the summer months and it can be taken as a positive indicator. A fragile housing market would have fallen away substantially in this situation. The fact that the market has not suggests a real underlying improvement over the past three to six months, according to the NAEA.
The average number of properties available for sale decreased from 64 in June to 59 in July and is now at its lowest level for two years since July 2007. The tendency for market activity to drop in the summer months can explain the drop in the figure since June 2009. However it is undeniable that levels remain historically low. The next three months should provide an uplift to housing stock levels as second and third time buyers find properties and consequently become sellers and also as activity increases after the summer dip.
Traditionally July and August are one of the low points of the year and a dip in activity is to be expected compared to the previous month. However the market remains robust relative to the position it was in 12 months ago.
