Realistic prices can keep housing market firmly on the rails

Although house prices have been falling since last autumn, the market for sellers is holding steady for properties that are realistically priced, especially in areas that are in high demand.

[ClickPress, Wed May 07 2008] Although house prices have been falling since last autumn, the market for sellers is holding steady for properties that are realistically priced, especially in areas that are in high demand.

According to the leading estate agent Hamptons International, the level of sales has remained steady across London, with viewing levels up 12% on the same period last year and an average of six buyers for every seller. April has shown the strongest sales figures for five months. While this is contrary to the trend of fewer buyers due to the increased difficulties in obtaining mortgages, it could also reflect the existence of many more cash-rich buyers in London than elsewhere in the country.

Furthermore, these buyers are making offers at a rate 62% higher than in 2005 and in keeping with the rate of the past two years. This statistic points to healthy activity and shows that the London market is increasingly well-priced.

The housing market has seen a rise in prices of around 200% over the past decade, and prices are now reflecting more realistic levels, rather than a fall in value in absolute terms. It is crucial for the continuing activity of the housing sector for such adjustments to be built into guide prices, so that the market won’t stagnate for too long.

“One of the major problems facing the UK housing sector at the moment is the number of properties on the market, priced at 10% higher than they should be,” said Mark Anderson, managing director of Hamptons International, which “has caused real stagnation”. He emphasized the need for sellers to take on board the necessity of readjusting their asking prices or face the danger of house prices falling further in the coming months.

Hamptons also stressed that recent predictions of house price falls of up to 30% are premature, as market activity is still functioning at the 10-15% price drop level.

“While the UK housing market remains in flux, and borrowing conditions have become much harder for many would-be buyers,” said Lawrence Smith of Decision Homebuyers, “a long overdue readjustment in pricing is a healthy sign, and a factor which will keep the market moving in areas where demand remains steady. It is also good news for those buyers with a deposit available who can take advantage of better-priced deals.”




For press enquiries, please contact Phil Rendall on 020 7099 9026
Email: phil@dhbuyers.co.uk
Web: www.decisionhomebuyers.co.uk

News provided by Decision Homebuyers, a leading UK property company offering a quick and simple solution for selling your home, no matter what the condition.
Decision Homebuyers carries out daily surveys of the national media to provide up-to-date news and commentary on the UK property market.

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