Supply of available homes continues to fall

Tell us something that we don’t already know! The supply of homes that are coming to the market has fallen again for the sixth consecutive month in a row meaning that buyers are now paying well in excess of the asking price to secure a deal.

The news will come as no surprise to those of us in the industry who have seen traditional methods of selling a home change in recent times. Agents are no longer doing individual viewings but are instead opting to do mass viewings or open houses where up to 50 buyers can look at a house at the same time.

It really works for the seller who normally ends up with several asking price offers and often sell their homes for well in excess of their asking prices. All of this is happening simply because there are not enough homes to sell and things will not change unless more vendors decide to move or more properties are built to satisfy the demand created by the various incentives being offered by the government and backed by the taxpayer.

It may not all be good news for vendors though as the number of first time buyers that registered in March appeared to drop off as buyers took stock amidst a fast moving housing market. It looks as though some first time buyers are refusing to get caught up in the hysteria that has engulfed the property market particularly across London and the south-east. The number of first time buyers fell from 30% to 25% in March.

This will cause some concern in government circles who are keen to help first time buyers get a foot on the housing ladder. Ironically the Help To Buy Scheme may be partly responsible for the drop in first time buyers that it was designed to help. The new mortgage rules that everybody has been talking about will be implemented next week and this is also likely to make it harder for first time buyers to get a loan.