Housing sales slump
Tuesday 10th March 2009, 8:48AM GMT.
Housing demand is rising but sales levels have fallen to a new record low, according to surveyors.
The Royal Institution of Chartered Surveyors (Rics) said 20 per cent more chartered surveyors reported a rise than a fall in new buyer enquiries in February, yet the increased interest has not translated into sales.
The average number of transactions per agency (over the last three months) is now at 9.5, a drop from 9.8 in November, and the lowest figure since the survey began in 1978.
Rics spokesperson, Jeremy Leaf, said: “Potential buyers continue to come through estate agency doors but without mortgage finance, transaction levels are likely to remain close to all time lows.”
London agents are experiencing the worst transaction levels with, on average, only six properties sold per agency over the past three months, Rics said.
The balance of surveyors reporting house price falls increased slightly in February with 78.3 per cent more chartered surveyors indicating a fall than rise in house prices, up from 76.6 per cent in January.
However, 11 per cent more chartered surveyors expect sales to increase in the coming three months than in January, suggesting optimism is returning to the market.
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House prices are at an average of £160,000. The national salary averages £27,500 – the crisis is that average property prices are still 6 times the average income. That means therefore that prices need to fall by 45%55% to make property affordable and return to sanity in the housing market.
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