Buyer demand combined with a continuing lack of supply is continuing to drive prices higher, predominantly in London and the south.
Property search engine Home said yesterday that the problem of dwindling stock for sale is getting “much worse”.
Supply of homes for sale this month is down 6% on July last year.
It said that with the exception of the north-east, home buyers now only have half the choice available in 2007. Offers over the asking price, particularly in London and the south-east, are common, it claimed.
Painting both similarities and distinctions between now and the last boom, it said artificially low mortgage rates have stimulated buyer activity, depleting stock which is not being replenished.
Home also said buy-to-let has “radically changed” the sales market and that the private rented sector “must be tamed”.
Marketing times continue to fall in most parts of the country, and the average time on market at 177 days for England and Wales is the lowest since November 2008.
In the south-east, time on the market averages 59 days.
Home said: “Property supply remains behind buyer demand in most regions as evidenced by falling time on market figures.
“In Greater London, where marketing times showed a worrying increase earlier in the year, a post-election buyer resurgence has taken up the slack.
“Only in the north-east region, where the recovery is still in its infancy, do we see a significant rise in supply (up 6% compared to a year ago) and this has served to make prices dip.”
Home puts the average asking price across England and Wales at £279,880.
Comments (8)
So – this so-called authoritative report states “Only in the north-east region, where the recovery is still in its infancy, do we see a significant rise in supply (up 6% compared to a year ago) and this has served to make prices dip.”
An alternative statement from one north-east region Agent’s fat fingers – ********.
Logically, if house prices continue to rise, more and more people will just stay where they are and extend instead, which just means the continuation of less and less stock. House prices are being reduced across the board, especially for larger houses. The only properties that seem to be flying off the shelf are affordable to first-time buyers or property investors.
Like the Bank of England, I feel another crash coming on.
I feel a slight correction is due perhaps rather than a crash. Stories in the press about shortage of supply and rising prices do little to help manage over ambitious sellers however.
” with the exception of the north-east”……Drinks are on Pee Bee at this years PIE Christmas extravaganza then!
Aye, wilko – Council Pop all round – on me! ;o)
Seems to me a shortage of sellers rather trims the field of buyers too. No sign of rising prices in my leafy corner of the world, a few bonkers over valuations from the corporate boys keen to keep HQ happy on figure reporting day. Looking at more price reductions that new instructions on t’internet of late. Perversely we were much busier before the election.
The upside to this unfortunate situation, as always, is that the best estate agencies survive and those without creativity wither and die. When the going gets tough, the tough get going!
A high FMA to Listing conversion rate is vital at present to maintain business – too many are chipping their fees to win the business with limited stock available.