Shortage of properties on the market

This month sees demand exceed supply for the first time this year according to reports from Rightmove”.

The number of properties coming off the market exceeding newly marketed properties coming on. Whilst this is to be expected at this time of year as a pick up in sales normally takes some properties off the market, the turnaround is encouraging following February’s worrying imbalance when supply greatly exceeded demand.

“Estate agents are reporting that some chains of buyers from last year are now finding they can all move as there is a first time buyer at the bottom.

In order to attract the first time buyer, everyone involved in the chain will need to reduce their price to pass this reduction down the chain. It's the norm to have to be creative in a tougher market, but not all sellers are willing to play ball by sharing the reduction burden.”

New Mortgage incentives from lenders, a small rise in stamp duty threshold and new share equity schemes may well contribute to this important change in the market by giving first time buyers a chance to get a foothold in the market.

Author: Nick Seymour

This month sees demand for residential propertyexceed supply for the first time this year according to reports from Rightmove”.

Published on 4/4/2006.

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