Housing Market Appears To Be Stabilising

The housing market is showing signs of stabilty as the number of sales held steady in April, despite the long Easter break and Royal Wedding.

In its latest survey, the National Association of Estate Agents (NAEA) has reported that the average estate agent sold 8 properties per branch in April, the same as in March and February.

There was a slight fall in the number of house hunters registering with agents in April, however the fact that actual house sales remained constant indicates that property market is showing signs of resilience, even in the face of economic uncertainties.

Michael Jones, President of the NAEA pointed out that: “Although regional variations do remain, this latest report indicates that the housing market is showing some overall resilience to economic pressures. Despite the expected lull in activity during the Royal wedding celebrations as people took advantage of the series of bank holidays to go abroad, sales remained stable.”

The continued resilience of the property market may be undermined by a slight fall in the number of home sales to first time buyers, which fell from 23 percent to 21 per cent from March into April. If this sector had been more active, the number of sales in April might have increased.

Jones, adds: “It is, however, disappointing to see the market share for first time buyer’s decrease for a second month in a row. Although in-line with figures from this time last year, the Chancellor’s Budget, which made special concessions for this group has had little effect so far.”

“Had the government focused on fiscal stimulus policies across the wider property market, we might well have seen some much needed upward momentum instead.”