NAEA reports emergence of buyers' market

Recent economic conditions have led to the beginnings of the re-emergence of a buyers' market, the National Association of Estate Agents (NAEA) has said.

The organisation said the average number of people planning to buy a house on agents' books rose from 282 in October to 290 in November, a figure the NAEA interpreted as a sign that potential buyers are being lured back after the uncertainty following the credit crunch earlier this year.

It also said an increase in the difference between asking prices and final prices for home purchases from a year ago, 4.2 per cent compared with 3.1 per cent, was an indication of the stronger negotiating position buyers have found themselves in recently.

Another finding was that first-time buyers as a proportion of the market grew from 9.2 per cent to 10.1 per cent between October and November.

The new comes just as Halifax figures estimate the number of first-time buyers to be at a 27-year low of 300,000.

Put together, this may indicate that the market has bottomed out and is starting to rise again as buyer conditions become more favourable, with interest rate cuts being one possible factor which may aid the trend in the months ahead.


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