Building demand means 11 house hunters chase each property

The National Association of Estate Agents (NAEA) Propertymark has recently issued its January Housing Report.

Summarising the current state of the property market, the report covers housing demand, supply, first-time buyer sales as well as property values.

Demand

On average in January, the number of potential buyers per member branch reached 425. Compared to December 2016, this was a growth of 10%, when on average, estate agents registered 386.

Supply

In January, the number of properties available to purchase on estate agents’ books was 38. This is the lowest recorded amount since July 2016 and is a drop of 3 when compared with Decembers’ figure of 41.

The fall in property supply paired with the increase in demand means that on average, there are 11 buyers chasing each property.

FTB and agreed sales

30% of sales during January were made to first-time buyers, a small drop from December’s figure of 32%.

Per branch, the number of sales agreed grew from six in December 2016 to eight in the first month of this year. This is the same level observed in November 2016.

Selling prices

During January, 7% of properties sold for an amount in excess of the original asking price. This is the highest percentage since April 2016, which saw 9% of properties being sold for more than the asking price.

Commenting on the findings of the report was Mark Hayward. The Chief Executive of NAEA Propertymark stated: “January saw a surge in buyers looking to kick off the New Year with a new home – but competition is rife with an average of 11 buyers chasing each property. The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand. When the Government issued their Housing White Paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference and it’s vital that building more affordable housing is at the very top of their agenda.”

 

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