Housing Market Prepares for Summer Slow-Down
The number of homeowners selling up increased in May, as sellers tried to secure offers before the annual summer slow-down, and demand from house hunters also rose, as buyers sought to get their offers accepted, while the number of sales agreed per branch stayed the same
Supply of properties
- The number of properties available to buy increased by 12 per cent in May, as sellers anticipated a summer slow-down and raced to get offers secured
- There were 37 homes available per branch in May, compared to 33 in April
- During the summer months, the market is typically quieter, as buyers and sellers head abroad in search of sun. In line with this, supply has increased every May since 2015
- Year on year, the number of sellers marketing their properties is down from 40 in May 2017, and looking at a ten-year comparison, it’s down 62 per cent from 97 in May 2008.
Figure 1: number of properties available to buy per branch over a ten-year period
Demand for housing
- Demand from prospective buyers increased from 337 in April, to 351 in May, as house hunters set out to have offers accepted before their summer holidays
- Year on year, there hasn’t been much movement as May 2017 saw 350 house hunters registered per branch, but looking at a two-year comparison, demand has increased hugely. In May 2016 there were 304 buyers registered per branch, marking a 15 per cent increase over the last two years.
Sales to first-time buyers (FTBs) and sales per branch
- For the fourth month running, the number of sales agreed stood at eight per branch, and for the second month in a row, 24 per cent of these were made to FTBs
- Year on year, the number of sales agreed is down from 10 in May 2017, while the percentage of those which were made to FTBs is also down from 26 per cent last year.
Mark Hayward, Chief Executive, NAEA Propertymark said:
“We see this every year. House hunters desperate to get their offer accepted, and sellers on a mission to find suitable buyers, flock the market in May. They’re hoping to get everything tied up so they can enjoy their summer holidays without worrying about viewings. But those willing to be more flexible might do well to hold off until the market’s quieter in July and August. Not everyone heads abroad over the summer, with lots of people opting for winter sun instead, so while the market is undoubtedly quieter, competition is a little less intense, which might better suit some buyers and sellers.”
1 All figures from NAEA Propertymark’s May Housing Report – full NAEA Propertymark March Housing Report available on request
Kindly shared by NAEA Propertymark