The National Association of Estate Agents (NAEA) released figures from its latest housing market survey today, revealing a slightly subdued residential housing market in June. Both registered buyers and the number of properties on estate agents' books decreased slightly, however sales remained stable and first time buyers' share of the market increased for the first time since February.
The number of people looking to buy a home decreased by 6% in June with agents reporting an average of 322 buyers registered in comparison to the 344 recorded in May. The number of houses for sale also decreased by 6% in June. NAEA members across the country reported an average of 68 properties for sale during the month compared to the 72 properties in May.
The number of sales reported remained level over the second quarter of 2007, with an average of 13 houses sold per agent, per month. Levels are down on those experienced last year, however, when NAEA agents reported an average of 15 sales agreed for June.
Meanwhile, first time buyers took a greater share of the market in June, increasing their percentage share from 8.9% in May to 9.8%, as the desire to get a foot on the property ladder proved a highly motivating factor, as prices have begun to stabilise slightly.
The average time taken to sell a property increased by just over a week, from 16.5 weeks in May to 17.8 in June. Unfortunately, the percentage of agreed sales that fell through also increased from 7.7% to 9.2% in June, as did the average number of viewings, which rose from 11 per sale in May to 12 in June. These figures are approximately the same as those recorded in June last year.
NAEA president, Stewart Lilly, comments: "The next few months are likely to be characterised by consumers being cautious due to uncertainty surrounding future economic movements and recent government changes. Buyers and sellers have been reacting to mixed messages over the likelihood of further rate rises. Many are choosing to employ a 'wait and see' strategy as a result. This, coupled with the summer period approaching, suggests there will be a quieter housing market over the next few months. I continue to be concerned with the recent increases in interest rates and the effect that these will have on consumer confidence. I urge the Bank of England to seriously consider the effect a further rate increase will have on the market."
