Agents hit by summer slump as supply hits 15-year low for month of July

The number of properties available to buy on estate agents’ books dropped to historic lows for the month of July.

Data from the latest NAEA Propertymark Housing Report shows stock fell from 37 properties per member branch in June to 35 in July.

This is the lowest level for July since the membership body began recording the figures in 2002.

Demand also fell, members reported, from 384 house hunters per branch in June to 347 in July. This is the lowest level since November 2016 but demand is still higher than the 298 potential buyers recorded in July 2016.

The figures also show sales agreed slipped from 11 to eight over the same period, while the proportion of sales made to first-time buyers fell from 30% in June to 23% in July.

This is the lowest level seen since last September when the rate was also 23%.

Only 3% of members managed to sell properties above asking price in July, while 80% of agents saw homes sold for under the listing value, the highest level since December 2016, according to the report.

Mark Hayward, chief executive of NAEA Propertymark, said: “It is natural for the market to dip in the summer and then recover.

“We usually see a subdued July and August, and then a boom in September with an influx of new properties coming on to the market. It remains to be seen whether this year is typical.

“We’d also expect to see the number of house hunters increase, as buyers strive to complete sales before the winter kicks in.”

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2 Comments

  1. Simon Bradbury

    Interesting statistics.

    Does anyone know how the NAEA define “stock”?

    I assume that this refers to sales stock only but does it also include Sales Agreed/ Sold Subject to Contract/ Exchanged but not completed… or just genuinely fully For Sale?

    In respect of “sales agreed” – are the figures quoted Gross Sales/ Solicitors Instructed/ Sales Agreed or are they ( what we refer to as ) Net Sales – the amount of units sold subject to contract, minus the number cancellations?

    I’d appreciate any help.

    Report
  2. PropertyFAQUK

    Saying that stock is at record lows, but basing your figures on a per branch basis just confuses and misleads everyone.

    Does anyone know how many branches there are now vs in 2002?

    Also does this ignore all of the online/hybrid agents?

    Yesterday, well timed, I did my own YoY analysis for my branches area of South Warwickshire and overall stock is up 12% based on the same day in August 2016.  This is actual homes currently on the market (not including Sold STC).

    I would imagine anything 10%+ or – should be within normal fluctuations within any given area.  Nationally there is likely to be less of a margin given new home developments would make less of an impact.

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