Jackson-Stops & Staff says the housing market has weakened a little since the EU referendum but prices have not suffered and the market remains “resilient.”
JS&S has repeated an exercise it undertook some weeks ago, by examining Rightmove data representing around 90 per cent of homes on sale.
It has looked at homes on sale on June 22 - the day before the Brexit vote - when there were 866,179 properties for sale nationally. Of these, 352,301 were under agreed offer, representing 40.7 per cent of the market.
The same analysis taken this week, on August 8, shows the number of properties on the market (including those under offer) has risen by 1.7 per cent to 872,953. Of these, the number under offer (including sold subject to contract) has fallen by 4.3 per cent to 335,176 - this represents 38.4 per cent of all properties on the market, a modest 2.3 per cent drop on the June 22 figure.
The average national asking property price has risen by £1,040 in the past two weeks, from £240,470 on July 25 to £241,510 on August 8, says the agency.
“Whilst the market has weakened slightly following the Brexit result, we usually see a slowdown in activity over the holiday months and these figures suggest we are yet to see a property crisis. Although agreed offers have marginally decreased, many thousands of buyers are still making offers to buy homes in the present economic environment” says Nick Leeming, JS&S chairman.
Analysis of properties under agreed offer or SSTC reveals that the average house price this week is £232,699 - that’s three per cent lower than a fortnight ago.
Looking at only the average asking price of all properties on the market, but not under offer or sold, shows an average asking price of £247,026 - this is three per cent higher than the average a fortnight ago. The agency says this suggests that sellers with agreed offers have been more realistic in pricing than those without an agreed offer in place.
“While sellers may have to drop their asking price a little to get an agreed offer, there is no evidence of sharp house price decline nationally” says Leeming.
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Well done to JSnS for putting something into the public domain that agents have been saying for weeks. Hopefully some consumer press picks up this report.
What tosh. We all know that Rightmoves initial asking price index isn't worth the paper its written on. Why can Rightmove simply include all asking prices with if older properties on the list if they have gone up or down in price request.
For example if a new property comes on at a record high asking price but doesn't sell its high price is recorded in the rightmove figures. Later if they drop the asking price the drop is not included. It is such a flawed and misleading house price index.
We all know we have a housing bubble, prices are extremely inflated. The sooner they fall to more normal levels the more transactions can take place. We all know people at the moment are putting off buying as expecting house prices to fall. The sooner it happens the sooner estate agents can start making money again.
I do not believe we have a housing bubble. The inflated prices we see are caused by agents overpricing to get the business (as usual), because there are so few properties available. Every two weeks after, the vendor will be asked to drop the price as there is "no interest at the moment" (again as usual) until the property is at the price it should have been marketed in the first place. If a property is priced correctly to begin with the market moves along nicely, as we are still seeing in Birmingham. Our sales are steady, and apart from the occasional fall-through, we are making money.
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