Buyer demand increases by 12% as available homes continues to fall

NAEA Propertymark issues its November Housing Report, which shows buyer demand increases by 12% as available homes continues to fall.

Key points from publication:
  • The number of buyers registered per branch has increased by 12 per cent from October to November
  • Supply of properties continues to fall to just 20 homes per branch – the lowest ever recorded and 50% less than November 2020
  • Fierce competition has resulted in 38% of properties agreeing sales for more than the original asking price
Demand from house-hunters:
  • The average number of house-hunters registered per estate agent branch stood at 571 in November, a figure that has been climbing since June 2021 and an increase of 12% from October’s figure of 511.
Supply of available properties:
  • The number of properties available per member branch stood at just 20 in November, a continued decline from 21 in October
  • This is the lowest figure Propertymark has ever recorded
  • This means there is an average of 29 buyers for every available property on the market, a 21 per cent increase in competition from October
Sales agreed:
  • The average number of sales agreed per estate agent branch fell slightly to 7 in November, from October’s figure of 8.
  • Year-on-year, this figure is almost half of the sales agreed last year which stood at 13 for November 2020. However, looking back over the past 5 years, 7 is the average number of sales agreed for the month of November
What properties sold for:
  • In November, 38% of properties sold for more than the original asking price.
  • This is an increase from October when 21 per cent of properties sold for more than the original asking price, and continues the trend of a strong sellers’ market
  • This is also almost 4 times higher than last year’s figure when just 10% of properties sold for over the asking price
Sales to FTBs:
  • The number of sales made to FTBs rose to 29 per cent in November from October’s figure of 25 per cent

 

Nathan Emerson, Chief Executive, Propertymark, comments:

“The pressure on the housing market and consequently house prices, is continuing at an unrelenting rate. However, heading into December, the market should start to slow. Those with a property to sell would be wise to act sooner rather than later as the level of demand is expected to continue into the first quarter of next year but cannot last forever.”

 

Kindly shared by NAEA Propertymark

Main photo courtesy of Pixabay