Hope for first time buyers

Latest figures reported by members of the National Association of Estate Agents (NAEA) indicate that consumers continue to remain unsure of the market. However, there was reported stability in the number of viewings before a sale is secured, time between instruction and the number of agreed sales which have fallen through.

Chris Brown, president of the NAEA, comments: "On the plus side, members have reported that the first time buyer market is slowly increasing with 11.8% shown as the percentage share of first time buyer sales in June. For first time buyers who have the adequate funds in place and can secure mortgages, now is a time they can operate as opportunists and take advantage of the market and the properties and prices currently available.

"However, it is clear from NAEA members that the last few months have been a difficult time for both the home buyer and seller. Consumer confidence is still low and this can be attributed to various economic factors including the continuing rising costs of living, the credit crunch and, of course, the shackles around the mortgage market.

"Confidence needs to be restored and this can be achieved if the government, Bank of England, mortgage lenders and various other bodies work together to ease the pressure. We are continuing to call on the government to cut stamp duty for first time buyers and move the threshold to give people a break. In addition, the Bank of England needs to ensure the mortgage markets are steadier. If consumers continue to find it hard to obtain mortgages how can the market place expect to move forward?"

First time buyers regain footing on the property ladder

The year 2008 has so far been a difficult period of time for first time buyers, however it would seem from the figure reported by agents in June that this sector of the market is returning.

June reported an average of 11.8% of first time buyer sales, which is an increase from the month before which was 10.6% and indeed a massive growth from the same time a year ago which was 9.8%. The rise in sales shows that first time buyers have regained some confidence and have realised that they can use the current market to their own advantage, providing they have the correct finances available.

House hunters lose confidence

The number of house buyers on agents books is lower this month with members reporting an average of 226 house buyers in June compared to 247 in May. This is the lowest figure reported by agents in the last year. Last June the figure stood at 322, which comes as a stark contrast.

This drop in figure suggests that consumers are anxious about the current market and are readily feeling the impact of the credit crunch. Many consumers have adopted a ‘wait and see' attitude which has been prompted by fear, inflationary pressures and the credit crunch.

Stock levels decrease

The number of properties for sale on agents books slightly decreased in June to 94 in comparison to 97 in May. This could be a consequence of home sellers starting to hold back and waiting to see if the market improves. However, the figure reported this June is much higher then 68 that was reported the same time last year.

Sales lower for agents

It is clear from June's figures that NAEA members are still selling homes, with an average of 6 sales being achieved. However, this figure has reduced from the month before when the average number of sales was 7 and indeed stood stable at this figure for three consecutive months beforehand.

It was expected that sales would drop slightly based on the figures reported in this month's survey and comments made by agents.