Supply rises at last but over 80% of homes sell below asking price

New figures from the National Association of Estate Agents suggest that supply is at last creeping back up to seasonal norms - and demand is on the rise, too.

The NAEA says the number of house hunters registered per estate agent branch rose by a sixth in May, from 265 to 307. This is the highest level recorded since September 2018, when 338 prospective buyers were registered. 

However, year-on-year, housing demand is down by 13 per cent from May 2018 when there were 351 house hunters per branch.

In terms of supply the number of properties available per member branch increased in May, from 35 in April to 41 – the highest level seen since December 2018.

Year-on-year the supply of housing has increased, too, as there were only 37 properties available to buy in May 2018.

Meanwhile the number of sales agreed per member branch increased for the second month running, rising from an average of eight per branch in April, to nine in May. This is the highest level of sales since September last year, when the same number of sales were recorded per member branch.

Year-on-year the number of property transactions has increased, with an average of eight sales agreed per branch in May 2018.

However, the number of sales made to first time buyers in May decreased marginally, falling from 27 per cent in April, to 26 per cent; nevertheless, year-on-year this represents an increase of two percentage points.

“It’s evident that buyers and sellers are no longer waiting for the outcome of Brexit and want to get things moving, particularly as many sellers are realising that it’s a buyers’ market in certain areas of the country” according to Mark Hayward, NAEA chief executive. 

“Some 81 per cent of properties sold for less than the original asking price in May which shows that estate agents - with buyers and sellers, are successfully negotiating a property sale - with them coming to an agreement on the value of the home.”