- New instructions and sales all up over 15% on December
- First time buyers, representing 16% of all buyers, are up from a low of 6% last November - but are still well down on the typical range of 20-25% of the previous five years
- House prices up 8.4% over last twelve months – the highest annual rise of house prices since July last year.
The latest survey of estate agents across the UK from the National Association of Estate Agents (NAEA) shows that business is booming at the start of 2004, with the number of house buyers on the books at its highest level for six months.
Homebuyers’ confidence in market returns
The number of sales agreed, viewings, and new instructions taken on also all increased for the first time since August, indicating that the new year has re-installed homebuyers confidence in the market .
First time buyers heading back cautiously
The resurgence of the first time buyer continues, totalling approximately 16% of the total number of sales, following an all-time low of 6.2% in November 2003. However this figure is still significantly lower than in previous years, illustrating the number of potential buyers currently priced out of the market.
Price rises slowing
House price rises continue to be steady, with the majority of estate agents consistently reporting rises of around 8%, slower than the increases of 2002 and the beginning of 2003, which typically saw twelve-month rises of between 15% and 20%.
The number of viewings and weeks between instruction and sale, and sale agreed and exchange, remained steady at an average of seven and ten weeks respectively.
Melfyn Williams, President of the NAEA, commented, “Estate agents across the country have reported brisk business following the seasonal break over Christmas and New Year. Transactions, instructions and sales are all up and people are still buying and moving. The steadying of prices over recent months is good news for the market and in line with the NAEA’s predictions for the year.”
