Buyers 'to benefit' from slow sales

23-Oct-2007

SmartNewHomes.com has added its voice to those who believe that a slowing in house price growth will prove beneficial for first time buyers in the coming months.

Last week the National Association of Estate Agents (NAEA) suggested that quick-on-the-uptake buyers would be able to take advantage of a slowing market, and now the property website has said likewise, after having published new figures showing a 0.9 per cent drop in the average price of a new home month-on month.

This has contributed to a cumulative 1.2 per cent fall in prices over the past three months, suggesting that the amount of money required for a deposit on a first time buyer mortgage has also fallen.

Furthermore, SmartNewHomes.com notes that many developers will be looking to sell properties quickly over the coming months in order to boost their year-end financial results, a move that will play into the hands of new buyers.

"This [trend] will come as welcome news to first time buyers who are the lifeblood of the housing market and play a vital role in feeding a continued demand - if this group continues to delay purchasing their first home it could prove detrimental to the economy on the whole," said David Bexon, managing director of the website.

"The latest developer incentives, promoted through SmartNewHomes.com are expected to aid first time buyers and reduce the affordability pressures currently preventing them getting onto the ladder," Mr Bexon added.

Lower interest rates would also prove beneficial for prospective homeowners, and the Bank of England is indeed expected to trim rates in the new year.

Excess supply could open door for first time buyers
http://www.firstrungnow.com/first-time-buyer-news/excess-supply-could-3578.aspx

First time buyer numbers down but stability could return

http://www.firstrungnow.com/first-time-buyer-news/first-time-buyer-numbers-3545.aspx

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