Market uncertainty could be attracting buyers

11-Oct-2007

The Royal Institution of Chartered Surveyors (Rics) has revealed that prices continued to fall during September – and at the fastest rate seen for two years.

The second month of price drops saw 14.6 per cent more surveyors report a fall rather than a rise, up from August's figure of 3.3 per cent.

On top of this, first time buyer enquiries dropped at their fastest pace since March 2003, with 51 per cent of surveyors reporting a fall rather than a rise.

But the picture is not as clear-cut as that, according to Rics, with some shrewd buyers viewing the softening market as an ideal chance to purchase affordable housing.

"[Some buyers], conscious that the next move in interest rates is now likely to be down rather than up and market meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive market-place," advised Rics spokesperson Jeremy Leaf.

Reaction to the news has largely been centred on the fact that prices are unlikely to crash – and the Intermediary Mortgages Lenders Association (IMLA) has said that first time buyer mortgages will not suffer either, at least in the mainstream sector.

"There is now a good supply of funds available to the consumer. Plenty of lenders have plenty of money to offer to creditworthy customers, and in most cases there's no reason for a shortage of funds to be an impediment to normal home buying or remortgaging activity," said IMLA executive director Peter Williams.

Mr Williams added that the market would continue to "tick over" at a stable level for the next few months.

First time buyers see prices fall
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-see-3528.aspx

First time buyer enquiries down in July
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyer-enquiries-3493.aspx

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