Economic Trouble Downs Property Market Activities

All hope was lost for analysts last May who predicted that the residential property market would be able to bounce back from its recent slump. This failure to rise was apparently contributed by the lack of mortgage finance and the current economic difficulty. This was further proven by surveyors, as only 5 per cent of them reported a rise in sales rather than its apparent fall. Three months to May, the quantity of completed transactions with surveyors also decreased by 3.4 per cent. This has been recorded as the lowest in the year. Additionally, the rise in stock levels and lesser amount of sales transactions in May and the sales to stock ratio fell to a significant 20.6 per cent, which is actually below the industry, long run, average of 33.5%. Buyer's also signified their disinterest as there was a 2 per cent decrease in property inquiry.

Talking about house prices, approximately 28 per cent of surveyors stated that they saw falls in price. This, once again, is the lowest count this year. Nevertheless, several of the respondents still observing the decline in prices, the majority of 82 per cent saw declines inside the 0.2 per cent margin. This has been an ongoing trend for the past months and very much represented across England. London, on the other hand, is the sole region experiencing a rise in property costs. This is why, if we look towards the future, it looks quite bleak, despite the fact that surveyors' remain positive. A steep 27 per cent drop on price expectations by respondents is representative of this occurrence, saying that the price is more likely to fall than get its desired rise.

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