Buyers priced out of the market and houses selling in days

Many desperate buyers are being priced out of the market as 2007 begins even more frenetically than first expected, according to Hamptons International.

With a massive increase in sales activity and an astonishing number of chain free applicants keen to get on board with property, unfortunately compromise rather than perfection is the reality for most in today’s market.

The sheer volumes of buyers are exacerbating the feeling of a lack of stock, with any sensibly priced properties selling out within hours or days rather than weeks or months and many for considerably more than their asking price.

The Thames region has witnessed an incredible start to the year, with a huge wave of market appraisals up 69% when compared to the same time last year. It has also witnessed an increase of 90% in offers and 35% more viewings. Overall, the sheer volume of potential new entrants looking for property has vastly exceeded forecasts.

“It is easy to see why a portfolio of a few houses we instructed on only three weeks ago has attracted 63 offers from an “Open House” weekend, and all being negotiated on at considerably more than their asking price. The best outcome prospective buyers can hope for is that values ‘plateau’ at a level that still meets some of their main criteria for moving,” notes Giles Soutry, regional sales director, Surrey/Kent, Hamptons International.

The London sales market has got off to a very brisk start too. Buyer numbers are up and the region has provided 21% more market appraisals to potential vendors than last year.

According to Marc Goldberg, regional sales director, London at Hamptons International, “There has been an acute shortage of properties for sale in prime areas of the Capital for several months, while demand from buyers has reached record levels. Our stock f available property is 33% lower than last year, whilst demand is 22% higher. This is resulting in some very aggressive buying behaviour.”

Demand continues to outstrip supply in the Western region too, but there are early indications that 2007 will see more of a balance between available stock and demand, than witnessed for a while.

“With further rate rises anticipated during this year, affordability will no doubt play an important part in respect of any future house purchasing transactions,” said Ursula Sadler, regional sales director, West.

She continued, “Properties in the West Country continue to provide good value for money and there is an expectation that with an exceptionally strong London market showing no signs of abating, many purchasers will be forced to find a home further afield, seeking out areas that offer excellent road and rail communications.”