Housing Market Slump

Housing Market Slump

Housing Market Slump

Fears of home buyers and sellers have kept the market in negative territory.

The Royal Institution of Chartered Surveyors has reported a sluggish start to 2011, blaming poor demand from buyers and a lack of suitable new properties for sale.

Rics claims that cautious buyers are worried about the future of the economy and potential mortgage rate increases later in the year.

January saw the majority of surveyors witness a decline in a new instructions of sales and a drop in actual sales in the three months leading up to January. Sales fell to 14.6 sales per surveyor.

A majority of surveyors said prices were at the same level in January as December while 31 per cent more say they saw a dip in house prices in January

There appears to be a North South divide when it comes to house prices as the decline was seen most dramatically in the East Midlands, Yorkshire and Humberside. London saw the most consistent prices in the country.

Ian Perry from Rics said that, “Uncertainty over the prospects for employment, alongside the shortage of mortgage finance particularly for first-time buyers, continues to weigh heavily on transactions levels. However, there is a very clear regional pattern emerging”.

Surveyors are hopeful that as the weather improves over the next few months optimism will set in, the market will improve and sales will pick up, if only slightly.

Waiting for the market to improve before putting your house up for sale may mean that it is unlikely to. Should sellers and buyers alike be bolder and take the property plunge?

Leave your comment

  • (not published)