Buyers show more interest in housing market

10 January 2009

The most talked about subject at the minute is the stagnated property market and falling house prices. However Financial Times reported today that buyer's interest in property has started to rise. Interest in the market has turned positive, so sales are also expected to rise despite that not everyone is optimistic. The Royal Institute of Charted Surveyors has reported that interest increase was due to interest rate cuts and reductions in asking price. The biggest interest increase was noticed on the West Midlands and the West of England. However, demand in London was weakest as it appeared to be that many prefer to wait and see, while others are entering letting market. Slightly fewer surveyors have reported falls in house prices, but a number of transactions per agency of surveyors fell to 10, 6 the lowest number since 1978. The regional picture is not that great either: in London surveyors report only 7 sales per agency, 9 in Wales and East Anglia and North East 14. Despite all of the above stock to sales ration appears to be stabilizing. Jeremy Leaf of RICS said: "Many are starting to see the current market as an opportunity to purchase a previously unaffordable property despite the worsening economic picture. But, unless people feel relatively confident about their job prospects, they're unlikely to even try to obtain mortgage finance unless of course trading down or seeking to release capital. Vendors still have to accept the inevitable fact that house prices are falling and re-price their property to suit current market conditions."