273: Property market shifting to buyers says survey
Navigation trail: / latestnews / archive / 273 - published: 16-04-07
The balance of power in the property market is beginning to shift from sellers to buyers, research by property website Propertyfinder has found.
Average initial offers fell to 2.3% below asking price in April, the lowest since July 2006, after a first quarter in which sellers could expect bids well above the figure advertised.
The slowdown appeared to be linked to first-time buyers reaching their financial limits, with new buyers falling to 22% of the market from one third in the same month last year.
âDemand at the bottom end of the market is definitely calming, and there are signs that the rest of the market is following,â said head of Propertyfinder Nicholas Leeming.
âIt is no wonder first-time buyers are holding off purchasing property â increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar.â
Recent research for the Council of Mortgage Lenders has also confirmed that the number of first-time buyers in the market is falling.
Stretched house price affordability has been compounded by rising interest rates with increasing expectations that interest rates will hit 5.5% before they begin to fall.
Easter is historically one of the busiest periods in the property sector and market data and consumer sentiment is typically at its most positive.
Source:
Citywire.co.uk - Investment Solutions