Survey Shows Restored Confidence in Housing Market

Housing Market Growing

The number of houses on the market has grown by 25% from a year ago, as shown in recent research by the National Association of Estate Agents. They said that a typical estate agent listed 70 homes for sale last month, up from just 56 in February 2010.

The association claimed the increase in sellers indicated there is restored confidence in the property market, and there is also evidence that sellers are becoming more realistic regarding the asking price. Over the last 12 months many properties have been marketed at a level that is unrealistic, and this has contributed to the stagnation of the property market.

The increase in vendors has been met with a rise in the number of buyers, and on average estate agents now have 268 listed prospective buyers, the highest levels in 7 months. The NAEA said the increase in sellers means the availability of houses matched renewed demand, and this should result in short-term stability in the housing market. However in the long term, this may drive prices down, as the disparity between demand and supply had been a key factor in supporting property prices throughout 2009 and early 2010. Additionally, there are worries that rises in interest rates, along with Government spending cutbacks, could damage the market in the coming months.

The total of concluded sales increased somewhat in February, as the average estate agent sold 8 properties, a rise from 6 in the previous month. The percentage of properties purchased by first-time buyers also rose slightly from 24% to 25%.

Michael Jones of the NAEA said the housing market remains variable throughout the UK as agents report a considerably higher increase in inquiries and property supply in some areas than others.

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