NAEA sees improvement in housing market

Permalink: NAEA sees improvement in housing market
by Kay Murchie

The National Association of Estate Agents (NAEA) has reported an improvement in the housing market

According to the organisation, the average estate agent sold 9.5 properties during June, a slight fall from the 10.4 reported in May but almost double the level of 5.2 experienced in August 2008.

Estate agents have now sold an average of around 10 properties every month for the past three months and the NAEA said this shows evidence of “increased activity”.

Meanwhile, the NAEA said there was a slight fall in the number of prospective buyers registered with estate agents, with this figure decreasing to 290 in June, compared with 299 in May. However, the organisation points out that this is still the highest number for over a year.

Gary Smith, president of the NAEA, comments: “The housing market is in a far stronger position than it was 12 months ago.”

“After several months of continuous improvement the market stabilised in June, ahead of an expected seasonal dip throughout the summer,“ added Mr Smith.

However, the body said the number of properties up for sale remains at a low level, with the average estate agent having only 64 homes on their books in June, down from 69 the previous month and the lowest number in over two years.

Meanwhile, with regard to house prices, the Halifax last week reported that house prices fell by 0.5% in June from the previous month.

In contrast, the Nationwide said UK house prices rose in June by 0.9% and is the third time in the last four months that UK house prices have risen.

However, many economists are expecting further price falls due to rising unemployment, while several housebuilders warned last week that the lack of mortgage availability continues to have an impact on the recovery of the UK property market.