FTBs'' in trouble
24 April 2008
According to the latest report from the National Association of Estate Agents (NAEA) first time buyers are finding the current property climate difficult; agents report that the market share for the first time buyer market reduced in March.
More positively, the number of houses available rose giving more choice to potential buyers but the number of sales agreed remained sluggish indicating consumer confidence remains uncertain. However, optimistically, the number of buyers on books has increased showing demand is still out there.
NAEA President, Stewart Lilly comments: “The global credit crunch, squeeze on mortgage approvals and the media cloud that currently surrounds the property market are undoubtedly having effect on individual’s decisions to buy or sell.
“There is a constant need to remind people that the underlying factors that hold-up the property market - low unemployment, historically low interest rates and a pent-up demand for houses – still exist. In fact, a number of NAEA agents from across the United Kingdom are still reporting stable property markets with many of their branches making steady sales.
“There are indications that first time buyers have dropped their market share once again showing a “wait and see” attitude has been adopted. Over the next few months it is imperative that the shackles are released on the mortgage market so consumer confidence can be rebuilt, allowing the market to stabilise.”
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