Mortgage News
NAEA: September will indicate market strength
The next two months will signal whether the housing market will rise or fall, the National Association of Estate Agents (NAEA) has said, as the seasonal slowdown saw figures drop in August.
As activity fell back in August following the expected historical trend, the NAEA said that the housing market remains healthy year-on-year with housing stock levels and numbers of registering house hunters comparing favourably to August 2009.
Michael Jones, president of the NAEA, said: “Year on year, it does not appear that there has been a drop off in activity.
“However, the next couple of months will be telling. The market appears relatively flat at the moment which we expect during the holiday month of August. We would expect some indication during September and October as to which way it is likely to go, before we get the traditional pre-Christmas slow-down.”
NAEA figures showed that the number of people registering with estate agents fell from 292 in July to 250 in August, while the number of sales per branch also dropped from eight in July to seven in August.
The proportion of sales made to first-time buyers also declined to 21% in August, down from 26% in July, which the NAEA said was still “reasonably healthy”.
Industry, not regulation, must lead later life lending change
Sponsored by Suffolk Building Society Intermediaries
Housing stock levels also appear to be modestly recovering, with agents recording an average of 69 properties on their books, up from 68 the month before.
Jones said: “Supply of housing has been low in the first half of this year and it is welcome to see it return to a similar level to 12 months ago.
“What we need now is for the lenders to increase mortgage availability particularly to first-time buyers. There remains a strong underlying confidence in property, which is still considered by many to be the best longer-term investment.”