Property Market Showing Signs of Stability

In figures released today, members of the National Association of Estate Agents (NAEA) reported that whilst regional variations are still significant, the first signs of stability are becoming apparent. Members reported stability in the sales agreed, the number of viewings before a sale is secured and the average difference between asking and sales price.

In particular the number of viewings before a sale is secured is fourteen, up two on the same period last year, and the average sales per month is seven, the same as in March.

Chris Brown, President of the NAEA, comments: “The figures from the April report suggest that the market is stable, however, consumer confidence is still dented. Properties supply is good but buyers are being cautious. It is apparent from the survey results that some people are adopting a ‘wait and see attitude’, watching the market, before making any decisions. Many, especially first time buyers, will be feeling the results of the credit crunch and tighter lending leading to them being unable to move onto the ladder or up the chain. Some agents are also finding it difficult to stop sales falling through as people get ‘cold feet’ or fail to secure mortgages but we must remember that this happens in the best of markets.

“However, what people need to remember is that the market is stable and we are not seeing massive price drops. There are still strong economic factors at play, such as high employment and low interest rates and sales are still taking place. Moreover, people need places to live and property purchase remains a good long term investment.”

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