Public confidence in the housing market is well and truly off the bottom as propertyfinder.com’s March survey of home buyers and sellers showed confidence in the market back to levels not seen since September 2008, just before Lehmans went spectacularly bust. A majority of the 2075 respondents to the March poll (61.5%) still believe prices are likely to continue falling, by an average of 3.7% over the coming year, but this is far fewer than the low point in December when 75% predicted further falls in the value of homes.
The pick-up in confidence suggests the number of housing transactions is now likely to recover from its lows. The Land Registry reported just 33,404 transactions in November (latest data available), 59% lower than the previous year and the lowest since records began. There is an 80% correlation between transactions and propertyfinder.com’s confidence monitor, indicating that those seeking to buy or sell a property will now be able to do so more quickly.
Nicholas Leeming, director propertyfinder.com said: “The prospect of higher transaction activity is not only good for the spring home-moving season, it’s crucial for the economy too – much more so than house prices. When homes change hands people use all sorts of services such as removals firms, surveyors and so on, and will spend money on renovations and new consumer goods for their new homes. House prices may yet drift lower, but buyers can take advantage now. A typical buyer offered 9% below the asking price in March, saving them around £15,000 on already lower asking prices.”
