The number of buyers registering with estate agents fell for the third month in a row, dropping by 12% to an average of 218 – the lowest level since December 2008, when house prices were falling.
The number of people putting their home on the market dropped for the first time since June, leaving estate agents with 7% fewer properties on their books at an average of just 67, according to the National Association of Estate Agents (NAEA).
Richard Copus, chairman of the NAEA’s Devon branch, said: “The market suddenly ground to a halt in the middle of the month, possibly awaiting the Chancellor’s statement.
“Whether it picks up before the New Year remains to be seen, but there is no logical reason why we should be entering the double-dip which some doom-mongers have been forecasting for a while.”
The association said the housing market was likely to slow down further in the run-up to Christmas, as people put moving plans on hold until after the festive season.
But Michael Jones, president of the NAEA, warned that the traditional seasonal slowdown was being exacerbated by sellers who were unwilling to accept falling house prices, and buyers who were suffering as a result of the ongoing problems in the mortgage market.
He said: “Buyers and sellers are inclined to wait until the New Year when they have more time to commit.
“But the housing market is also very price-sensitive currently. Many sellers believe that the lack of available housing stock means they can make a sale without lowering the price of their home. However house-hunters are also confident of a good deal.
“Mortgage restrictions will need to be eased if we are to see any real increases across the market moving into the early part of 2011,” said Jones.
