It appears that the housing market is forgetting concerns triggered by Brexit, and people are deciding to just get on with it.
According to NAEA (National Association of Estate Agents), the number of homes for sale has hit a six-month high. They have reported that the average estate agency branch has 41 properties on its books.
The bad news for sellers is that buyers are bargaining hard, with reports of three-quarters of homes selling for less than the original asking price and sellers are having to be more realistic about the true value of their homes.
So who does this effect? This increase in property for sale is great news for people who are thinking of buying property as they will have more Choice and possibly more bargaining power.
This will be very helpful for first-time buyers as the shortage of properties on the market, led to a significant mismatch between supply and demand, was one of the main factors pushing up prices.
The NAEA’s Figures show that the proportion of sales made to fist-time buyer has increased by 3% in August. This brings it to 28% of properties being bought by first time buyers, up from 20% the previous year.
The market slowed in the run up to the referendum due to uncertainty surrounding the outcome of the vote, with a low period following the rush to beat April’s stamp duty hike.
Its reported that two out of five estate agents expected the demand to increase further following the recent interest rate cut, with 25% of them expecting more first-time buyers to enter the market.
Mark Hayward, managing director, of the NAEA, said: “Following a few months of uncertainty in the market, it’s more than encouraging to see things moving in the right direction.”
The main points to take from this are;
The number of properties on the market have come to a six month high as the market seem to show signs of stabilising. The average estate agent has about 41 properties on their books, but three-quarters of properties are being sold for less than their original asking price.
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