Average of 29 buyers for every property on the market

There is currently an average of 29 buyers for every available property on the market, according to Propertymark.

The average number of house hunters registered per estate agent branch stood at 571 in November, a figure that has been climbing since June 2021 and an increase of 12% from October’s figure of 511, the data shows.

But despite the jump in demand, housing supply continues to fall at an alarming rate.

The number of properties available per member branch stood at an all-time low, based on Propertymark data, of just 20 in November, a continued decline from 21 in October.

This means there is an average of 29 buyers for every available property on the market, a 21% increase in competition from October.

The average number of sales agreed per estate agent branch dropped marginally to seven in November, from October’s figure of eight, as a result of the widening supply-demand imbalance.

Year on year, 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.

The findings also reveal that almost two in five – 38% – homes sold for more than the original asking price in November, up from around one in five (21%) in October.

A year ago, just 10% of properties were selling for above the original asking price.

The proportion of sales made to first-time buyers rose to 29% in November from 25% in October.

Nathan Emerson, chief executive at Propertymark, commented: “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.”

SOURCE: Property Industry Eye | DECEMBER 22, 2021 | MARC DA SILVA