Buyers Market In The UK
The power of the market is evident in England where a multi-year boom in house prices is unraveling. "The ratio of completed sales to the numbers of property on estate agents books fell to 27%, its lowest level since 1996...Buyers are holding back expecting prices to go lower, and properties are sticking."
The strong psychology of a mania is playing out in reverse, along with headlines like this, Panic selling as house prices slide. And the fear of paying too much is taking over,"it is now a buyers' market as people can pick and choose from a rising number of properties."
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Despite the increase in the number of properties coming onto the market, and the apparent slow down in house price increases fuelled by the long-term boom in housing prices in the UK, the situation still remains desperate for many first time buyers. With the boom pushing average house prices in February for first time buyers to (£195,008), over 5 times their average joint gross salary (£38,533) (source - www.moneynet.co.uk). This follows the January report which showed "the average value of a property for a First Time Buyer (FTB) was £187,428 at the end of last month, compared to £162,317 12 months ago and £153,843 in 2003". The Royal Institution of Chartered Surveyors said, "any recovery is made more difficult by sellers’ refusal to drop asking prices" (source -citywire.co.uk)
Whilst there also remain worries over possible interest rate rises which have kept buyer numbers low, it is perhaps not surprising that buyers are holding back and the ratio of completed sales to the numbers of property on estate agents books fell recently.
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