Housing Report - October 2018

HOUSING MARKET CONTINUES TO SLOW

Key Findings

  • Demand from prospective buyers hit the lowest number for the month of November since 2012
  • The supply of available properties and number of sales agreed per branch also fell
  • Sales to first-time buyers (FTBs) remained the same

Demand for housing

  • The number of house hunters registered per estate agent branch fell last month, from 294 in October, to 282 in November
  • This is the lowest number of buyers recorded for the month of November since 2012, when agents registered 263. [Figure 1]

First Time Buyers Percentage

Figure 1: Year-on-year demand from house hunters

Supply of properties

  • In November, the supply of available housing fell by 13 per cent for the second consecutive month; dropping from an average of 40 in October, to 35 per branch
  • This is the lowest recorded since earlier this year, when 33 properties were available to buy per branch in April. 

Sales to FTBs and sales agreed

  • The number of properties sold to FTBs remained at 23 per cent in November for the second month running, increasing from 20 per cent in August and 22 per cent in September
  • Year on year, the number of sales made to the group are down from 27 per cent
  • The number of sales agreed per branch fell for the second month running – from nine in September, to eight in October and to seven last month. 

Mark Hayward

Mark Hayward

Chief Executive

“Last month it was clear that uncertainty surrounding Brexit was having an impact on the sector, and this month is no different. We usually see a seasonal slow-down, but it’s unlikely that the time of year is the soul cause of today’s market conditions. As we near the end of the year, we’d usually expect potential buyers and sellers put their plans on hold until early next year, but it’s likely that this year we’ll just see people holding off until there’s some clarity around what the Brexit deal might look like and what it will mean for the economy.”