Figures from the NAEA January Housing Market Report show that nearly a third (32%) of properties sold for the original asking price, with one in eight (12%) being sold for more than the asking price. This contrasts with figures from September 2013, when this data was first collected. Back then, under a quarter (22%) of properties were sold for the original asking price and only seven% sold for more.
NAEA member agents also reported a decrease in the number of available properties in January, down from an average of 47 in December 2013 to 45 in January. With an average of just over 350 house hunters per NAEA member branch, this means there are now an average of eight buyers for every property on the market. January is also the fourth consecutive month to show a drop in the number of properties available in the housing market and represents the lowest figure seen since July 2007.
However, despite the lack of property for sale, the average number of sales increased by a third (33.3%) in January. Sales were up from an average of six per branch in December 2013 to eight in January – reversing the decrease seen in December and reflecting the traditional resurgence after the holiday period. The proportion of first time buyers purchasing homes also increased, up from an average of 26% in December 2013 to 28% in January.
There was an increase of 5.7% in the number of house hunters registering with NAEA member agents, up from 334 in December to 353 in January – the highest number seen since March 2007 (385).
NAEA agents also reported that on average four percent of properties sold per branch were sold to people purchasing a house using Help-to-Buy. This figure is up from three percent in December 2013 and shows that the scheme is being considered when purchasing a house.
Jan Hÿtch, President of National Association of Estate Agents points out that supply has once again dropped and the competition for the best properties is really heating up. The growing number of house hunters in the market is causing buyers to react by offering asking price or over in many instances.
Jan concluded by saying:
"With confidence in the housing market increasing we are seeing more people looking to up-size and invest in property. The important first time buyer market also remained strong in January, but if competition for property continues to grow and the issue of supply persists, many would-be buyers may find themselves being priced out.”
