Members of the National Association of Estate Agents (NAEA) report a downturn in property market activity, with average asking prices down from £226,768 in October to £211,401 in November. The percentage of sales to first time buyer also decreased in November to 13.4%, down from 16.4% reported in October.
Completed sales decreased by 21% in November and NAEA members sold an average of 11 properties, compared to 14 the month before, which is a similar to this time last year. The number of sales that failed in November increased from 8.4% in October to 9.1%. This increase could be due to the rise in interest rates to 5%, announced at the beginning of November.
Properties available for sale in November decreased by 14%, from 64 per agent to 55, again a seasonal trend. The number of potential buyers decreased by only 5% from 360 to 342. The average number of times a house was viewed before it was sold fell from 11 in October to 10 in November. This is to be expected, as a depleted housing stock offers buyers less choice and less properties to view.
NAEA President, Charles Smailes, comments: "I am not surprised by the figures reported this month. The pre Christmas period is naturally quiet in most areas of the country. It is common for sellers to look to avoid the time obligations of selling at this time of year as they prioritise family commitments. I am, however, pleased to see that first time buyers have once again managed to maintain a good level of involvement in the market. I expect the slight dip in market share from last month to be indicative of many opting to wait until the New Year, as is the pattern across the rest of the market. Vast regional differences in activity continue to depict the wider housing market in the UK. The increase in interest rates has flattened the market in many areas, whilst other regions are thriving. A further rate rise would clearly have a detrimental effect on the areas that are now struggling."
