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NAEA: Sluggish sales highlight property anxiety
28 April 2008 11:30
Stable demand failed to produce a rise in sales last month, according to new data from the National Association of Estate Agents (NAEA), while new buyer activity fell again.
The number of house hunters per agent rose from an average of 243 to 249 March, although this was down from 385 a year previously, while the volume of properties on agents' books climbed slightly from 74 in February to 76 last month.
However, the average number of sales per agent fell from eight in February and 14 in March 2007 to just seven last month, indicating increases in both the time and viewings needed to complete a purchase and a rise in the number of transactions falling through.
Moreover, first-time buyers (FTBs) accounted for just 8.3 per cent of all sales in March, down from 11.7 per cent the month before and from 12.6 per cent a year previously, partially reflecting a drop in the availability of mortgage finance.
NAEA president Stewart Lily noted that FTBs are currently taking a 'wait and see' approach and warned that it was vital for the shackles on the mortgage sector to be removed so that confidence and stability could return to the housing market.
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