Date Added: 11 November 2009
Autumn Leaves Behind A Distinct Feeling Of Positivity In The Housing Market
This is according to their November Housing Market Report.
Their report echoes the media’s opinion that there is a definite recovery in the housing market (Halifax reporting that house prices had increased 1.2% in October), but the report does allude to the Government still needing to assist where it can to ensure growth in the New Year.
The report compares October with September, and the comparison of the two months shows that October’s results were slightly down on September.
The figures, however, show promise in many other ways as Kent HomeLink News (KHN) explains.
Key Findings
The National report’s key findings were as follows:
There was a decrease in the number of registered house hunters per branch (294 in September, 287 in October).
KHN - This is not a perceived issue as September is a bounce back month after a traditionally flat
month in August. October usually balances this out, and looking at the positives, in the same month in 2008 there were only 196 house hunters!
There was a decrease in the number of sales agreed per branch (average of nine (8.5) in September to 8 (7.7) in October).
KHN - This figure is still a signal of recovery when compared to last year which equates to an extra sale per branch.
Properties available for sale per branch decreased from an average of 62 in September to 57 in October.
KHN - The NAEA reports that the indication is that there is a backlog of buyers still waiting to sell their property once they have purchased their new home. Could Home Information Packs (HIP's) be holding this back too?
Slightly disappointingly,
The percentage of first time buyers fell from 26% in September to 22% in October.
KHN - However, this has been a fairly consistent figure throughout the Stamp Duty holiday period, and the market would certainly retain buoyancy if the Government were to continue the holiday into next year.
The gap between asking and selling prices has decreased with 10.9% in September to 8.75 % in October.
KHN - The NAEA suspects that this may be linked to the imminent removal of the Stamp Duty holiday as buyers are want to take advantage of the relief before it ends.
So what about the local market?
Caroline Wellard Joint Managing director reports that "Kent Estate Agencies have been experiencing a property market that has been steadily gaining momentum and showing promising signs of significant improvement for some time now notably assisted by those buyers who have previously been ‘sitting on the fence’.
Asking prices have increased over the last 3 months with new instructions experiencing a flurry of activity and interest often resulting in an offer, perhaps from more than one buyer, within the initial days of marketing accentuated by the fact that the market is hampered by a distinct lack of properties. This increased activity has, on occasion, meant an offer in excess of the asking price as eager buyers strive to secure their purchase.
There is the usual ‘Christmas rush’ as both existing and new buyers endeavour to exchange and complete before the year end."
Conclusion
Kent HomeLink News has identified a definite line in the sand developing.
o Nationwide reported that UK house prices, year-on-year, were higher in October (the first annual rise for 19 months)
o Halifax reported a 1.2% price increase in October
o RICS' latest housing market research in October, signalled that demand from first time buyers is rising
o NAEA’s November report shows a market level steadying
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