Member Article

Housing activity in the region increases - but problems still remain

Activity has increased on the North East housing market during October, with the number of chartered surveyors reporting that sales rose rather than fell in the last month.

While levels still remain low, this rebound from last months dip of -12% and represents a more positive picture for the region. Surveyors have attributed the increase to growing realism from sellers, who are now more willing to take offers to secure sales.

RICS North East residential spokesman Richard Sayer believes the results are encouraging, especially under current gloomy economic conditions.

He commented: “Reasonably priced homes are still selling well but mortgage problems persist and the level of sales falling through is unacceptably high.

“Transaction levels are low, but supply and demand are remaining in harmony and prices remain broadly level.”

He also called on buyers and sellers to be more reasonable in their demands when looking at a sale.

He continued: “With common sense and a degree of urgency it is amazing how sales can still progress swiftly and sensibly.”

New buyer enquiries have remained steady, albeit at low levels, but new instructions saw a slight fall, a trend which has been attributed to uncertainty in Europe.

Prices continue to remain low, with 28% of surveyors reporting that prices fell rather than rose. More than half now expect prices to continue to fall.

RICS Operations director for the North added: “ With the chaotic events in the euro are threatening to spill over to the UK and banks still imposing tough conditions on loans to first time buyers, any recovery in sales is still likely to be relatively modest.

“This will inevitably leave many people who would like to own a home unable to access the market.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .