11 Buyers Chasing Every Property
A massive surge in house hunters results in 11 buyers for each property
This January the number of properties available to buy was the lowest since July 2016.
Increasing the number of buyers for each property has a direct impact on the number of properties that sell for more than the original asking price. In January 2017, more than one in 20 properties (seven per cent) sold for more.
The NAEA Propertymark reports that in January the average number of prospective buyers registered per member branch was 425. This represents a 10 per cent rise from December 2016, when on average, estate agents registered 386.
Chasing each property
In December, 41 properties were available to buy on estate agents’ books. In January this number dropped to 38, the lowest recorded since July 2016. The decrease in properties and increase in house hunters means there is an average of 11 buyers chasing each property.
First time buyers in January accounted for three in ten (30 per cent) of sales. This was a slight decrease from December, when the group when made up to 32 per cent of all sales. The number of sales agreed at branch level increased from six in December to eight in the first month of 2017.
NAEA Propertymark Chief Executive, Mark Hayward said:
“January saw a surge in buyers looking to kick off the New Year with a new home – but competition is rife with an average of 11 buyers chasing each property. The increase in the number of properties selling for more than asking price in January could be a result of heightened interest and the fact there is simply not enough housing to meet demand. When the Government issued their Housing White Paper at the start of February we stated how important it was for the industry to put forward robust solutions to really make a difference and it’s vital that building more affordable housing is at the very top of their agenda.”