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Agents Warn Of "panic" Sellers Flooding Market

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From EAToday

The head of the National Association of Estate Agents is warning there could be a “panic” reaction by sellers, flooding the market with homes in the fear that mortgage restrictions and interest rate rises may reduce buyer numbers.

NAEA managing director Mark Hayward says the number of house-hunters is substantially higher than the number of properties on sale - at the moment.

“With current speculation of the interest rate rising, we could see more homeowners putting their houses on the market in a panic that house prices may reduce as a result of interest rate and mortgage rate hikes” he warns.

Hayward’s concern comes as the latest NAEA figures show a particularly strong market until recently, with 19 per cent of buyers paying more than the asking price in May.

The NAEA data shows that the supply of homes for sale has dropped by 27 per cent since this time last year, to 44 properties available per NAEA-registered branch.

The number selling for more than the asking price in May is nearly three times the seven per cent recorded when NAEA first collected this data in September last year. Some 46 per cent of sellers accepted lower than asking price – the smallest percentage over the same period.

NAEA member agents also reported an increase in the average number of sales agreed per branch, up from nine in April to 10 in May. The average number of house hunters registering with the association’s members dropped slightly in May to 374 down from an average of 392 house hunters in April.

High property prices are also affecting the first time buyer market, as those with limited budgets struggle with high prices. The proportion of first time buyers purchasing a home in May shrank to 25 per cent, down from 28 per cent in April.

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i though estate agents would have liked more places to sell. more chance of commission

Not if the vendors aren't realistic about pricing...they certainly weren't in the last downturn post 2007....fat stocks and no sales

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Mumbles is a forest of 'for sale' signs.

Loads have ramped their asking prices - many who have been trying to sell in all the years that I have been on HPC. Others have ramped their asking prices but are now clearly panicking and starting to drop them considerably.

I think loads of sellers are going to regret not selling during the first half of the year. The greedy feckers who raised their prices are now screwed IMPO.

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Banks expect mortgage approvals to fall significantly in the third quarter, according to the latest Bank of England Credit Conditions Survey. Some lenders are putting that down to stricter mortgage lending rules, the survey says. The BoE is expected to announce measures to curb excessive mortgage lending on Thursday.

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Panic first, owners.

The winners now having seen a second round of hyper-house-price-inflation haven't got an accord to all hold out and not sell for "less than it's worth." The crash will come from doubts and distrust and those who panic first, to get out with a good price, a lower then peak price, and thus bringing down house prices for other owners, provoking more sellers to accept lower prices

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EA Today said "those with limited budgets struggle with high prices". Out of interest, I wonder how much estate agents get paid, on average. Do they consider themselves above the position of having "limited budgets"?

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EA Today said "those with limited budgets struggle with high prices". Out of interest, I wonder how much estate agents get paid, on average. Do they consider themselves above the position of having "limited budgets"?

I overheard some of the local EAs I talk with talking about 12K salaries plus commission. I am sure the people who own the businesses do very well but the bog standard EA appears to be paid peanuts. I suspect that is why so many go and set up their own EA businesses.

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I overheard some of the local EAs I talk with talking about 12K salaries plus commission. I am sure the people who own the businesses do very well but the bog standard EA appears to be paid peanuts. I suspect that is why so many go and set up their own EA businesses.

Considering the average intelligence of the people we're talking about I'd say 12k is extremely generous.

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I overheard some of the local EAs I talk with talking about 12K salaries plus commission. I am sure the people who own the businesses do very well but the bog standard EA appears to be paid peanuts. I suspect that is why so many go and set up their own EA businesses.

They want some of their own?

penut-monkey-300x225.jpg

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I overheard some of the local EAs I talk with talking about 12K salaries plus commission. I am sure the people who own the businesses do very well but the bog standard EA appears to be paid peanuts. I suspect that is why so many go and set up their own EA businesses.

They would have made out like bandits during the Boom Boom (joke is on the sheeple) though? 12k keeps them solvent while they flog flog flog for all they are worth?

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