Buyer enquiries continue to rise but house sales at 31-year low

[Property Prices]

The Royal Institution of Chartered Surveyors’ (Rics) have reported that buyer enquiries have risen for the fourth consecutive month as house prices continue to fall and attract potential buyers.However, Rics said property sales in the UK in the three months to February remained at their lowest level since records began in 1978.According to Rics, the [...]

More: Buyer enquiries continue to rise but house sales at 31-year low

[Property Cashpoint]

I wonder if this is just people testing the water to see if they can pick up a bargain. Although it was reported on the Guardian that house prices did go up slightly in March so maybe it is a good sign.

[Ronny]

There are people out there still with the appetite for buying properties the problem is availability of suitable mortgage products.

Until it is easier for people to obtain mortgages actual sales figures will inevitably be lower.

[brian]

I think a lot of people are simply testing the waters as well - trouble is, many estate agents are still over-pricing properties - I've seen some add a premium of 10% to the realistic price (by comparable properties) knowing that it'll be negotiated down at least 10%.

I personally think that lack of flexibility and lack of realism within the estate agency business is especially unhelpful. It's their job to sell properties, there is interest, but they are still trying to push for the highest price for the seller, when it is a buyer's market.

[googler]

He who pays the piper calls the tune.

Is the EA calling the price, or the seller?

[drhouse]

Originally Posted by brian

I think a lot of people are simply testing the waters as well - trouble is, many estate agents are still over-pricing properties - I've seen some add a premium of 10% to the realistic price (by comparable properties) knowing that it'll be negotiated down at least 10%.

I personally think that lack of flexibility and lack of realism within the estate agency business is especially unhelpful. It's their job to sell properties, there is interest, but they are still trying to push for the highest price for the seller, when it is a buyer's market.

If they are prepared to negotiate down 10% then surely that is flexibility.

I would say that it is an Estate agents job to sell a property and obtain the best price possible for their client - the seller. Of course they should push for the highest price but ultimately all offers are taken to the client and they decide whether to accept or reject.

[brian]

If the estate agent is over pricing, then this is going to translate into fewer viewings. I don't see that serving the interests of the seller?

[drhouse]

Originally Posted by brian

If the estate agent is over pricing, then this is going to translate into fewer viewings. I don't see that serving the interests of the seller?

Valuation is not an exact science. Surveyor's valuations can differ by 10% or more. Anyway, because of Home Reports the valuation is there in black and white.

[googler]

The trouble with the RICS reports, though, is that they're only based on the perceptions of the (small number of) surveyors who also handle sales - when compared with the number of estate agents and solicitors throughout the country who are more actively selling, it seems that the RICS analysis is only analysing a small percentage of the buyer base.

[brian]

Originally Posted by drhouse

Valuation is not an exact science. Surveyor's valuations can differ by 10% or more. Anyway, because of Home Reports the valuation is there in black and white.

Inexact maybe, but when you see pretty much exact properties at 10% less not selling over 6 months, you don't jump in with a significantly higher price. That's just killing buyer interest, and the chance of a sale. IMO.