Market strong over Easter holiday: UK Property Shop News

The National Association of Estate Agents (NAEA) has released the latest figures from its housing market survey revealing a strong market over the Easter period. While as expected the number of sales agreed per agent dropped slightly for the spring bank holiday, sales levels were still up on the same time last year. Supply and demand evened out in April as the number of house buyers on estate agents' books dropped and housing stock increased. Meanwhile, the lettings market remained healthy with the number of vacant properties dropping in April.

Sales up on same time last year
Sales dropped in April for the first time since December 2005 in an anticipated quietening down over the Easter period. With many turning their attentions away from property purchasing over the bank holiday weekend, NAEA estate agents experienced a seasonal slow down. Sales agreed decreased by 7.1%, from 14 per agent to 13 in April. This figure is, however, 16.7% per cent higher than the same time last year when the average number of sales agreed was 12 per agent, revealing renewed strength in the market for 2006. NAEA agents also reported a slight drop in first time buyer sales in April, which fell in line with the overall sales decrease, as first timers' share of the market went from 8.9% to 7.9%.

Housing stock increases
The number of properties on NAEA agents' books increased in April for the first time in 2006, going up 1.6% from 61 per agent to 62. This is compared with 74 properties per agent in April 2005. With housing stock having been in short supply over the last few months this rise is particularly positive. There are, however, still a number of areas across the country where stock is still extremely low compared with the rising demand.

Buyers in Easter slowdown
The number of home buyers decreased in April as many took a break from house hunting in favour of time away over Easter. Airports reported their busiest spring bank holiday as people went abroad in greater numbers than ever before. The numbers of house hunters on NAEA agents' books dropped from 371 to 350 per agent, in a fall of 5.6%, compared with 366 per agent in April 2005. Agents expect to see buyer figures level out again as the market moves away from the holiday period.

Length of time taken to sell improves on 2005
The number of viewings before a sale remained on a level in April at 12. This is compared with 15 per sale in April 2005. While the time between instruction and completion increased, from 16.9 weeks to 17.1, this figure is also lower than the same time last year when it was taking on average 18.7 weeks to sell. This is a positive indication of the number of serious house buyers now entering the market compared with spring 2005 who are both willing and able to get on with the transaction.

Meanwhile, sellers are taking advantage of renewed demand as the average difference between asking and selling price increased for the first time this year, from 3.3% to 3.4%. The figure suggests that sellers' expectations are creeping up again. The NAEA would advise homeowners to take into account their estate agent's recommendation on value to ensure they are not pricing themselves out of the market.

Lettings market busy
Lettings agents have reported high levels of activity over the last few months, with the number of vacant properties decreasing again in April from an average of 15 per agent in March to 14. The levels have remained fairly consistent since the beginning of the year, with only slight fluctuations, as the lettings market has demonstrated it is robust.

Positive turn for the market
NAEA President, Charles Smailes, comments: "The market has taken a positive turn in April despite the holiday period. The rise in housing stock levels is particularly good news. Despite stock levels remaining low in some parts, we should not expect to see massive leaps in house prices, as property values and availability are inextricably linked.

"This year's Easter sales levels are also a positive for this quiet time of year. House hunting becomes less of a priority over the spring bank holiday as people prefer to take a break for DIY, gardening or going away. It is encouraging to see that levels are higher than the same time last year. While I believe the slight drop in first time buyer sales is not too much to worry about at this stage, it is likely that Chancellor's dismissal of first timers' interests in the March budget with his paltry increase in the stamp duty threshold has done little to encourage them.

"We have seen a steady closing of the gap between asking price and selling price over the last year. While this gap increased slightly again in April, on the whole the message is getting through that sellers need to be realistic, and the market is picking up as a result."