Thursday, July 10, 2008
Property transactions now virtually evaporated – RICS
Housing demand is weak and transactions continue to evaporate, there is a very real danger to the wider economy - RICS
The lack of new instructions to sell property continues to provide the market with some support in the near term. Large numbers of 'distress sales' (either repossessions or sales from those attempting to avoid the repossession process) have not taken place. With mortgage arrears still low, until the worsening economic picture filters through into the employment situation, this lack of supply will prevent significant declines in house prices. In fact the net balance of Chartered Surveyors reporting new instructions to sell property fell to -26%, the second lowest figure since the question was asked in April 1999.