Sellers and buyers are staying away from the market, the Hometrack report revealed this morning, as sales fall away.
The number of new applicants has fallen 10.5% in the last month, after a 6.3% fall in December and a 2.2% drop in November.
The speed at which property listings are dropping has also accelerated. This month, there was a 5.4%% drop, following falls of 3.4% in December and 0.8% in November.
This month, there was also a 14.3% fall in sales agreed, following falls of 0.9% in December and 4.6% in November.
There was not a single region in January where the number of sales agreed did not fall. Sales in East Anglia held up best, with a drop of 6.3%, but fell hardest in the North-East (down 23.1%) and the South-West (down 19.2%).
Hometrack said the underlying trend is one of tightening supply and weakening demand.
Between August and January, the number of buyers registering with agents declined by 23%. Meanwhile, the supply of homes for sale has contracted by 7% over the last six months – and supply has not contracted to this extent since 2009, said Hometrack.
It also reports no change in house prices, although a rise in London prices has offset small falls across the rest of the country.
As has become usual, London’s housing market distorts the overall picture. Average time on the market is 10.2 weeks, but this is helped by London’s time on the market of 6.5 weeks. In the South, the average time on the market is 9.1 weeks – the highest for nearly three years. In the North and Midlands, time on the market is just under three months, at 11.9 weeks.
Hometrack’s director of research, Richard Donnell, said: “The latest survey reveals a market dogged by uncertainty.
“On a national basis, house prices have not increased over the last 18 months (since June 2010) – a theme carried over into January when prices were unchanged. A small rise in London offset falls in other regions.
“London looks set to buck the national trend again in 2012, thanks to overseas buyers providing a boost to prices in London’s prime areas. Elsewhere, demand remains constrained by the uncertain economic outlook.
“Some agents have also reported an increase in down-valuations as surveyors exercise growing caution.”
The Hometrack survey questioned 1,500 agents.
Separately, a Rightmove survey, also out today, shows that 60% of home movers believe it is a buyers’ market. Only in London does the percentage of people who believe it is a buyers’ market slip below 50% (to 47.1%).
Surprisingly, perhaps, 66% of the 32,111 people questioned think house prices will stay the same or go up this year – a higher percentage than those asked the same question a year ago.
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Comments
Where do they get the 'time on the market' figures from? In my pleasant, leafy part of the country - many properties are on the market month in, month out - taken off the market, tried again in the Spring, after the Summer, whatever, whenever, with a different agent ... with only an occasional drop in price but with regular changes of agent.
Does 3 months on the market mean '3 months with Agent A, 3 months off the market, 3 months with Agent B etc.
My understanding is that in some parts of the country the market is at a virtual standstill. All very mysterious.
I'm not on benefits thanks Brian.
If you've got a super-sized mortgage and work in the housing market, you may well be soon though.
You're probably the type who likes to take out payday loans because it makes you richer...
If you have no shame, just keep taking the benefits rant and stay in that class of person.
Those poor mugs that rent. I really wish I was fortunate enough to be in negative equity like many FTBs who have bought since 2005.
Personally, I can't think of anything better to do with my money than hand lots of it over in mortgage interest payments to bankers.
Should I buy, I hope house prices double. Then, when I want to move up the ladder, I can load up on even more debt. That'll make me really really rich.
and all the time rents incease as folks, mugs who rent, have to live somewhere....when does the benefits cap kick in??
Remember:
Hometrack is a leading property analytics business in the UK and Australia providing valuations, risk management services and market intelligence in the property sector. The company represents the largest source of mortgage valuation records available to any single lending or surveying institution.
[Taken from their site]
So they provide trend information based on statistics, it cannot apply to all. So some EAs are screaming, some are minting it.
This story does nothing except get us talking about them, what has it done for your business?
As for property being priced too high.
Everything except fried chicken & chips and bottom bin supermarket alcohol is overpriced, and as for energy prices wow!
I suppose it's all those greedy heartless EAs behind it all
Ooooh how disobedient those naughty buyers are for not overledgering themselves on a highly over-priced rabbit hutch........oh sorry house. Can't they see that houses represent such great value. "Can't go rong wiv bricks n' morta can ya"
Little Ballocks - You are extremely ill-informed.
Come on everybody knows property is a good bet, its as safe as houses, property doubles in price every seven years, go on you know you want it!
Start selling you lazy agents you are ruining the market!
What's the point of releasing an analysis of November and December at the end of January?
From what I can see, there has been a lot more happening since the new year and we do not need to talk the market down just as we start to see some much needed activity.
Surprisingly busy here - will wait for it to die then
And the local corporates are now doing 0.7% commission and on this much reduced market I am at a loss as to how they arrive at this fee as a viable proposition. Or is it this level for 4 weeks only and then up it goes to 1.5% minimum?
Answers on a post card please.
Got to say that my volume is low but I sold one property on my second day back to work and I have just agreed a sale that came from a viewing on my first day back at work.
Go figure...
(and I am Mr. Glass Half Empty)
We are just two deals away this month from breaking our all time sales record. It isn’t as bad a they make out. Price your properties realistically, get to know your buyers and your half way there!
Why don't they slash interest rates and get the market moving again? (Sorry? ... base rate is already at a 350 year low .... ahh, didn't realise)
Why not force lenders to lend 100% mortgages - or get the government to do it eh? (House prices are already unaffordable for the next generation - getting them to buy in now would be completely unsustainable because interest rates will go up at some point in the future and then mass repossessions will start ...)
Gee, sounds like house prices are way too high - how did that happen Dad?