According to the latest report from NAEA Propertymark, the demand levels are widening further from the number of properties available on the market.
Levels of available property stock continue to fall and have reached a record low at 21 per branch in October, decreasing from 23 in September. Year on year this is a 46% decrease from October 2020.
The number of sales made to FTBs remained steady at 25%, falling slightly from 28 per cent in September. Buy to let sales increased from 9% in September to 13% in October. The number of buyers entering the market is relentless and with the level of first-time buyers remaining steady and buy-to -et investor sales on the increase there is currently an average of 24 buyers per available home on the market.
Sales agreed
Activity slowed in October but remains steady, estate agents reported an average of 8 sales agreed per branch, a slight decrease from 11 per branch in September. This is a decrease of 32%.
In October, 55% of properties agreed sales at the original asking price. Interestingly, despite demand, for the second consecutive month the number of sales being agreed at over asking price has fallen. Properties agreeing on sales at over the asking price has dropped to 21% in October from 27% in September.
Nathan Emerson, Chief Executive, Propertymark comments: “Figures from October show a continuing picture for the housing market which is unsustainable. Estate agents across the country are working with some of the lowest levels of available homes we have ever seen yet demand from buyers is not easing.
“Heading into the festive period should take some of the heat out of the market as we know that usual market trends see a decrease in activity as people turn their attention to Christmas.
“However, with so many buyers still hungry for their new home, sellers would do well not to put moving plans on hold for too long.
"What we need to see in the new year is a gentle levelling out, which could be driven by new year motivations delivering new sellers or changing interest rates taking some of the mounting energy from buyers.”
