Buyer demand increases as available homes continues to fall

HOUSING MARKET REPORT: The number of buyers registered per Propertymark member branch has increased by 12 per cent from October and the supply of properties continues to fall to just 20 homes per branch – the lowest ever recorded and 50 per cent less than November 2020.

This means that agents have an average of 29 buyers for every available property per branch, which is a 21 per cent increase in competition from October.

House hunters

The average number of house hunters registered per branch stood at 571 in November, a figure that has been climbing since June 2021. Fierce competition has resulted in 38 per cent of properties sold having been agreed for more than the original asking price.

Selling property 

The average number of sales agreed per branch fell slightly to 7 in November, from October’s figure of 8. This figure is almost half of the sales agreed last year which stood at 13 for November 2020. However, looking back over the past five years, seven is the average number of sales agreed for the month of November.

House prices

38 per cent of properties sold for more than the original asking price. This is an increase from October when 21 per cent of properties sold for more than the original asking price, and continues the trend of a strong sellers’ market. It is also almost four times higher than the 2020 figure when just 10 per cent of properties sold for over the asking price.

First-time buyers

The number of sales made to FTBs rose to 29 per cent in November from October’s figure of 25 per cent.

The pressure on the housing market and consequently house prices, is continuing at an unrelenting rate. However, heading into December, the market should start to slow. Those with a property to sell would be wise to act sooner rather than later as the level of demand is expected to continue into the first quarter of next year but cannot last forever.
Nathan Emerson CEO | Propertymark