Housing market stable over Easter Break

The housing market remained steady over the Easter period, according to figures from the National Association of Estate Agents (NAEA).

As expected the number of sales agreed per agent dropped slightly over the holiday period, reflecting figures seen at the same time last year.

April saw the number of house buyers on estate agents’ books also decrease, whilst housing stock remained stable.

Easter sales slow down

The number of sales agreed decreased in April in an expected seasonal slow down during the bank holiday weekend. The figures decreased by 7.1%, from 14 per agent in March to 13 in April. This mirrors levels seen in April 2006 indicating the predictable slow down during this period.

Housing stock stable nationally – regional picture more varied

Housing stock has been in short supply in many areas across the UK since the beginning of the year. Nationally, the number of properties per agent plummeted in February from 66 to 57. March and April, however, have seen the national figures level out again at 62 per agent. As the healthy supply in some areas pulls up the national average, it is balancing out the poor supply in regions such as London and the South East to create a level national picture. It has to be remembered that the regional picture is much more varied.

Buyers in Easter slowdown

The number of buyers decreased in April as many took a break from house hunting in favour of time away over Easter. The number of house hunters on NAEA agents’ books dropped from 385 per agent in March to 348 in April, which is a fall of 9.6%.

When compared with April 2006 figures this is a marginal 0.5% drop from the 350 per agent this time last year demonstrating that despite the speculation regarding the threat of increased interest rates, prospective buyers have still been entering the market with relative enthusiasm for the time of year.

Length of time taken to sell remains steady

The number of viewings before a sale remained on level at 12. This reflects figures seen in April 2006. Meanwhile, the time between instruction and completion remained virtually stable, from 15.2 weeks in March rising to 15.7. This figure is still lower then the same time last year, when it was taking on average 17 weeks to sell. This indicates that house buyers are entering the housing market prepared and willing to be part of a speedy transaction.

Gap between asking and selling price closes

The average difference between asking and selling price decreased from an average of 2.9% to 2.7%. Compared with the figures of April 2006, when the average difference being reported was 3.4%, it is clear to see that there has been a drop in expectations. This suggests that sellers are being realistic with regards to the asking process and are most probably taking on their estate agent’s recommendation on value to ensure a satisfactory price is reached for both parties.

Busy period ahead

NAEA immediate past President, Charles Smailes, comments: “It is encouraging to see that the market has remained stable over the Easter period especially with the looming threat of raised interest rates on the horizon.

“There has also been a steady closing of the gap between asking and selling price, which is great to see that both buyers and sellers are being realistic on property values in the market place.

“Looking ahead into May, I believe there will be a huge increase of properties flooding onto the market despite the impending HIPs legislation having being postponed until 1st August. The anticipation of HIPs will have definitely meant that the May housing market report will see an influx of properties being placed onto the market which will have allowed them to defer from the added expense and time of setting up a HIP. However, since the announcement I anticipate that there will be a significant cooling in the last week of May.”