Despite the fact that viewings and sales are on the up – evidence of pent-up demand and activity – the actual number of houses for sale has fallen by 30% since May 08. What does this mean? Does it signal that the house market is showing signs of recovery?
The two principal factors determining the market are supply and demand; and sentiment. The May statistics demonstrate that demand is clearly there, but supply is short. Confidence is slowly returning – buyers seem less nervous as they conclude that (first-time buyers aside) banks are relaxing and allowing them a bit more flexibility. Our agents predict that the lack of supply could force the market to bottom out sooner than the sceptics are predicting – nobody has a crystal ball but the signs are indicating that we are near the bottom of the market.
The conclusion to all of these statistics surely indicates that, as demand is high and supply is down, now is a good time to put your house on the market, if you are thinking of selling.
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