Demand for Housing Rockets in February
Demand for Housing Rockets in February
We can report today that recent research by Hometrack has reported that demand for housing has jumped by 14.7%. This is the first increase for 8 months and is probably due to a mix of both seasonal demand, normal for this time of year and an element of some pent-up demand which is now feeding into the market after a very weak second half of 2010.
Research suggest that the supply of homes for sale has increased by 7.5%.
This is the highest monthly increase for 3 years with estate agents agents reporting a 25% increase in sales agreed over February which, once exchanged, will reduce the available supply of homes for sale in the months ahead. As a London mortgage broker, this is good news for Capital Fortune as this will support pricing levels so long as demand does not weaken in the near term.
The report has also seen a decline in the supply of homes for sale over the last six months together with a modest re-pricing of housing. This has created a positive environment where sales are progressing between willing buyers and sellers. This is supporting sales volumes, which is vital for price stability.
Hometrack report that the average prices has fallen by -0.2% in February, the lowest monthly decline for 6 months and the proportion of the country posting price falls has declined for the last 4 months. They confirm that lower prices were reported across 26% of the country compared to 37% in January and 57% in October 2010.
The strongest market conditions were seen in the South of the country and there is a growing gap in the time of a property being on the market between the Southern regions (8.6 weeks) and Northern regions (12.1 weeks) reflecting the differing supply/demand balance. That said the market remains highly fragmented at a local level. House prices nationally, have rose across 4.8% of the country in February with the modest improvement in underlying pricing being highlighted by the proportion of the asking price achieved increasing for the first time in 12 months to 92.4%, up from 91.9% in January 2011.
In addition, the time on the market also fell in February and stands at 10 weeks, down from 10.2 weeks in January 2011.
The survey was based on research undertaken by 5,100 agents and surveyors and provides positive support for a strong, resilient market.
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