by Mark Johnston
House buyer/sellers expectations in the current housing market.
It seems that the public’s confidence in the housing market has been resilient so far this year.
House prices continued to fall in January 2012, but it was at the slowest rate seen since June 2010. Prices across theUKthen continued to dip during February; with 13% more chartered surveyors reporting price falls rather than rises.
March saw an increase in house sales as many first time buyers rushed to buy before the end of the stamp duty holiday came at the end of March.
In May the number of new buyers registering with agents continued to slow, Hometrack reported. The number of new applicants increased slightly by 0.4% compared with an increase of 2.1% in April and 4.4% in March.
The number of sales agreed in May wobbled, the Hometrack indicator showed a rise of 3.8% compared with a rise of 10.1% in April and 13.2% in March.
Richard Donnell, director of research at Hometrack, said “the latest survey reveals a national market registering a slowdown in both demand and sales agreed, while supply coming on to the market continues to rise”.
Expectations for future house prices now remain more optimistic as transactions levels slowly continue to edge upwards. Therefore many surveyors have a less pessimistic outlook surrounding future prices and they have predicted that sales will increase over the coming months.
Independent buying agent, Gabby Adler stated “what is consistent across the country is that the volume of transactions is well below what we were seeing at the height of the market”.
A recentHalifaxstudy has reported that over 54% of consumers think that it will be a good time to buy in the next 12 months. This figure is more than 3 ½ times more than the proportion of Britons that feel it will be a good time to sell.
Experts state that many vendors seem to be waiting to see what happens with the economy and many would be buyers believe they will not be able to get mortgage finance so there is no point trying.
According to most research challenges in raising a deposit is the main barrier to buying a home.
With affordable mortgage finance still out of reach for many potential first time buyers, it remains to be seen whether the more optimistic outlook for future sales can be sustained.
Ian Perry, the Royal Institution of Chartered Surveyors (RICS) spokesman, said “with sales expectations remaining flat, it is important that vendors are realistic in their pricing if they wish sales to go through”.
Therefore anyone looking to sell in the current market needs to put their property on at the right price or be prepared to wait indefinitely.
It seems that buyers now have a strong hand at the moment, the fact that supply is even weaker than demand is the only thing that is supporting prices.
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