NEIGHBOURS CAN BE CRUCIAL TO A HOUSE SALE

MORE PROOF THAT THE HOUSING MARKET IS COOLING

Fewer buyers, slipping prices, and longer sale times, say the UK 's biggest network of independent estate agents

Sales in Yorkshire & Humberside now take 13 viewings, with less than four buyers for every home on the market, says leading Doncaster estate agent Johnsons.

The housing market is cooling, according to the latest quarterly survey of the country's largest network of 750 independent estate agents, Home Sale Network.

Price s are trimming, fewer buyers are taking longer to purchase and more visits to make an offer. But, the total number of completed sales remains steady.

Nationally, they also reveal early signs of a comeback for beleaguered first-time buyers, with their share of completed sales showing a slight increase from less than 14% in the second quarter to more than 15% of Home Sale Network members' sales at the end of the third quarter.

In Yorkshire & Humberside, however, sales to first-time buyers stood at 11.4%.

While the average asking price of a three bed semi in Yorkshire & Humberside has held steady at £148,373, most of the region's Home Sale Network members (53%) report a reduced number of buyer enquiries, with 3.4 buyers for each home on their books. It now takes an average of 13 viewings to secure a final offer.

Neil Harrison of Johnsons, in Doncaster, said: “A clear picture of change is now beginning to emerge.

“A succession of recent reports has identified the simple fact that prices and the market are calming, in response to interest rate rises and warnings from the Bank of England. The housing market is most definitely in the midst of a re-adjustment, however this is not necessarily a bad thing as many would lead you to believe. Over the last three years, we have experienced an exceptionally strong market, with rapid price growth. The market is now simply becoming more realistic and returning to ‘normal',” said Johnsons.

Network members also report a sea change in supply and demand.

In Yorkshire & Humberside during the previous quarter, more than 22% said there was more demand than supply: that figure slipped to less than 2% in the latest quarter. At the same time, the number reporting more supply of homes for sale than potential buyers has increased from 48% to 81%.

Home Sale Network members around the country have also seen sale prices being trimmed, with the national average asking price for a three bedroom Semi-detached houses slipping from £171,588 in the previous quarter to £166,754.

More buyers are also now challenging vendors' asking prices. In the second quarter of 2004, 96% of sales handled by Home Sale Network agents met the asking price. The figure stood at 94.3% in the latest quarter.

This trend is echoed by other findings in the latest Home Sale Network survey.

The average time between a house going on the market and a final offer being accepted has increased to more than eight weeks in the latest quarter, from about six weeks in the previous quarter.

Members also report that, on average, the number of viewings that home sellers can expect before receiving an acceptable offer has increased from 10.7 to 12.5.

According to Richard Tucker, Managing Director of Home Sale Network: “We have, however, seen the first encouraging signs for first-time buyers in many months. This quarter's survey recorded the first increase – albeit slight – in national sales to first-time buyers for a very long time”, said Mr Tucker.

“We shall need at least another quarter's results to confirm a sustained trend, but the latest evidence seems to suggest that the market is now focusing on those who need to buy, rather than those who want to ride a property price bandwagon”, he added.

15 November 2004

For further information contact Johnsons on 01302-322121 or email sales@johnsons-estate.co.uk