Housing Demand at 11-Year High, but Still No Supply
Housing demand has reached an 11-year high, according to the National Association of Estate Agents (NAEA).
It found that in June, the amount of applicants registered per branch was the highest since August 2004.
The NAEA’s monthly report revealed that 439 house hunters were registered on average per member branch in June, 15% higher than in May.
Despite a rise in demand, supply of housing stock per branch dropped from 46 in May to 44 in June.
Managing Director of the NAEA, Mark Hayward, explains: “What we’re seeing is a market coming back to life in full force.
“Buyers are feeling more confident and those who put their plans on hold over the election and political aftermath have kicked off their hunt, causing this massive jump in demand.
“There’s also an impetus to buy right now in light of the impending interest rate rise as buyers fight to buy and fix mortgage rates.
“But the fact that demand is at an 11-year high, without the housing stock to fuel it, is bad news for the market.”1
However, there are growing signs of unaffordability for first time buyers. The NAEA also found that sales to first time buyers accounted for 24% of transactions in June, down from 29% in May.