Housing market - Pre-Xmas slowdown comes early

New data from the National Association of Estate Agents (NAEA) has revealed a slow October housing market as the number of buyers on books, houses available and sales agreed, took a tumble, indicating a considerable cooling down in the housing market.

The number of house buyers on estate agents' books was at its lowest for the past four years, with agents reporting an average of 282 buyers registered in comparison to the 326 recorded in September 2007.

The figures reflect the current housing market cool down, as banks, building societies and borrowers tighten their belts following continued uncertainty in the current economic environment. Prospective purchasers are putting their existing buying and selling ambitions on hold as the present cautionary cloud exists.

With a downturn in the number of house buyers, the properties on agents' books saw a slight reduction as NAEA members across the country reported an average of 65 properties for sale in October, compared to the 80 properties in September. However, when compared to the same time last year the figure is slightly up as 64 properties per agent were recorded in October 2006.

First time buyers increased their share of the market from 8.8% in September to 9.2% in October in a positive step forward. Indeed, prices have calmed down in selected areas giving some first timers a renewed enthusiasm. However, this figure is down on the same time last year when they had a 16.4% share of the market.

NAEA president, Stewart Lilly, said: "The market place at present is experiencing a seasonal slowdown, which you would normally expect at this time of year. However, there are potentially delicate times ahead, particularly if the government presses forward with the final phase plans for home information packs too soon.

"All consumers need a period of stability in order to build up their confidence. We are pleased to see that the Bank of England has suggested it will be lowering interest rates over the coming months, which should go some way to restoring confidence."