Transactions last month were down 13.9% on a year ago – but Paul Smith, CEO of haart, said the bottom of the market has been reached.
In the haart network, the number of exchanges in August was 3.7% up on July, despite the large annual drop.
Haart is predicting that in England and Wales, there were 43,781 exchanges in August.
At haart, house prices at exchange were 4.1% down on July, and 0.9% up on August 2016, standing at an average of £230,964.
First-time buyers paid an average of £164,479 and London house buyers paid £544,454.
Smith said: “First-time buyers benefited from falling prices in August, as the housing market reached the low of the summer slowdown.
“First-time buyer prices fell by 10% on the month, dropping to their lowest level since August last year.
“Transactions across the board still remain 14% down on where they were a year ago – however, I sincerely believe we have reached the bottom of the market.
“Prices are still rising, but at a slower pace than inflation, and now that unemployment has reached a record low it’s only a matter of time before interest rates climb back up again.”
He said there are nine applicants for every property listing, saying it was indisputable that there is plenty of buyer demand, and that in London, almost 100% of asking prices are being achieved.
Smith said: “Housing has been a bottom of the pile priority for government ministers for too many months whilst the ins and outs of Brexit are debated.
“Now, in the midst of a housing crisis, is hardly the time to take a step back on housing policy. We need to see real reform to make real change on the ground now.”
Well sometimes the words “the bottom has been reached” come back to haunt you ?That’s a very bold statement .It will be interesting to reread this piece in 12 months time
“He said there are nine applicants for every property listing, saying it was indisputable that there is plenty of buyer demand, and that in London, almost 100% of asking prices are being achieved.”
Another sweeping statement
That certainly isn’t the case for newbuild where discounting is rife and stamp duty paid emblazoned across many developers sites .as for the first time for a few years apartments are still hanging around the portals on completion especially those above the £600k threshold for Help 2 Buy
In developments currently physically completing a 2 tier market has developed with price differentials for the same apartments in the same development Those for resale which can only be assigned and those being sold direct by the developer commanding higher prices where they can sell to buyers utilsing the Help 2 Buy 40% deposits
By all means talk the market up but……….
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The looming interest rate rise I think Paul has called this too soon.
I believe 2018 will be one of the hardest years for estate agents for a number of reasons.
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If he genuinely believes that the bottom of the market has been reached please can he also explain why this isn’t reflected by his brands who continue to massively over-value everything?
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He says – “Transactions across the board still remain 14% down on where they were a year ago – however, I sincerely believe we have reached the bottom of the market.
I say – I wonder how many of his vendors decided to try alternative means of selling their property ?
Whilst I don’t want the like of purple9ricks to do well I do think vendors who consider “corporate agency” might veer away if they don’t see the different value of spicerhaart to PB.
No criticism of spicerhaart intended.
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