Gloomy sales figures lead estate agents predict worse scenario

Posted under General by Michael

The data published by the Royal Institution of Chartered Surveyors (Rics) has revealed further fall in property sales in December, touching ever lowest level of last 30 years.

Rics points out that sale per estate agency fell from 10.6 to 10.1 in the last quarter of 2008. These gloomy figures have made estate agents panic and predict that worse is still to come.

In London, estate agents who could sell an average of just 7 properties in last 3 months of 2008, are facing very tough situation, while agents in South West and South East could succeed in selling only average 9 properties. They fared better in East Midland by selling average 15 homes in the same period.

The effect of falling house prices and lower interest rates was evident from significant rise in new buyer enquiries for consecutive second month. However, mortgage availability is still very low and first-time buyers continue being denied mortgage without hefty deposits.

According to Rics, completed sales to unsold property ratio, which is a lead indicator of likely price changes, fell from 13.6% to 12.9%, reaching lowest level of last 16 years.

Analysts are predicting further falls in house prices forcing potential buyers to still wait and watch for striking any purchase deal.

The British Chamber of Commerce has painted bleak economy and economic downturn at alarming rate leading to serious recession in the UK.

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