January saw first time buyers increase their market share with a rise from 13.0% in December to 14.5%…
This is the highest figure recorded for first timers since October 2006 when 16.4% was reported by NAEA agents.
The rise in this sector reflects the change in market conditions that are fuelling a first time buyer rise as they take advantage of the current climate. The decrease in interest rates and drop in property prices in some areas have acted as a good platform for many individuals who may have struggled otherwise to gain a grasp on the first rung of the property ladder.
Figure 1 – Average percentage share of the market for first time buyers
NAEA President, Stewart Lilly, comments: “It is very encouraging to see the New Year start optimistically as buyers and sellers make a welcome return back to the market. The past couple of interest rate cuts have seemed to taken effect on boosting consumer confidence and the market has started to stabilise and see a renewed sense of optimism set in.
“What’s more, first time buyers have increased their share once again, indicating better times ahead for this sector of the market. We hope this positive trend will continue throughout the year and would hope to see a few more interest rate cuts to help boost consumer confidence, helping to strengthen the market further.
“However, we should note that the figures are still not what they should be for this time of the year and although the first month of 2008 has been encouraging, agents are still experiencing regional differences. We hope that the market continues to stabilise over the coming year.”Google+