Lowest number of property sales ever
Lowest number of property sales ever
Tuesday 9th December 2008
November saw the lowest number of property sales ever, as the property slowdown continued.Over the month members of the Royal Institution of Charter Surveyors (Rics), reported an average of just 10.6 sales.
In London it was down to only seven sales.
The number of properties on agents' books was also down to 78.3 – as unsatisfied sellers started to rent out their properties.
However, the number of new buyers heading to estate agents rose for the first time since October 2006.
There was also a first slither of hope recorded for house prices.
A total of 91 per cent of Rics members recorded price falls – compared with 94 per cent last month.
Two per cent saw prices rise.
Across the country, no surveyors polled saw rises in the north, Yorkshire & Humberside, and the East Midlands.
In London, 87 per cent saw price falls, and five per cent saw prices static.
Jeremy Leaf, Rics spokesperson, said: "Many are starting to see the current market as an opportunity to purchase a previously unaffordable property despite the worsening economic picture.
"But, unless people feel relatively confident about their job prospects, they're unlikely to even try to obtain mortgage finance unless of course trading down or seeking to release capital."
He advised home sellers "to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions".
Howard Archer, chief UK economist at Global Insight, said: "Housing market fundamentals remain largely unfavourable.
"Ongoing very tight credit conditions, still relatively stretched housing affordability on a number of measures, faster rising unemployment, muted income growth and widespread expectations that house prices form a powerful set of negative factors weighing down on the housing market."
He added: "These are likely to continue to outweigh the beneficial impact of lower interest rates resulting from the Bank of England slashing interest rates, particularly as it is still very difficult to get a mortgage."
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