Jump to content
House Price Crash Forum

Interesting Finding

Recommended Posts

Thought this might be of interest. Reading the latest NAEA news release and was wondering if there was any relationship between the numbers registered at each EA, the number of houses for sale and prices (supply and demand innit) .

So, looked at all the past reports that I could find and it seems that there is a 'magic' ratio of around 0.23 when you divide the number of houses for sale by the numbers registered at each EA by. So when this figure is greater than 0.23, prices tend to be falling and lower than this prices are rising.

This month, the figure is 0.31 (has been gradually rising and been above 0.23 for the past 3-4 months) and at the peak of the last lot of falls (end of 2008), it rose to around 0.5.

So it might be worth keeping an eye on this.

House hunters losing interest, says NAEA

Friday 12th November 2010

The housing market contracted in October as the number of sellers and buyers declined month-on-month, the NAEA reported this morning.

While sales levels were the same as in September, with the average branch selling seven properties in the month, activity levels fell back.

Michael Jones, president of the NAEA, said that sellers were unwilling to accept falling house prices and buyers were suffering from restrictive lending criteria.

The average number of house hunters registered with each branch dropped to 218 in October compared with 247 in September, while the number of houses available for sale dropped from an average of 72 per branch in September to 67 in October.

The percentage of sales made to first-time buyers increased in October from 20% to 23%, the NAEA claimed.

Jones said: “Mortgage restrictions will need to be eased if we are to see any real increases across the market, moving into the early part of 2011.”

Earlier this week, the RICS reported that average sales per estate agency firm slipped to 15.2 in October. This was down from 16.7 in September and compares to the long-term average of 26.8 sales per month.

House hunters losing interest, says NAEA

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 429 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.