Ruth Mitchell

Shares rebound on hopes of economic stimulus ? Latest Market Analysis

The UK housing market is leaving many surveyors feeling pessimistic, after a slight fall in property values last month.

Last month readings in the North East dropped of from June’s net balance of -26, and have now remained in negative territory since Mat last year.

There was also a fall in new instructions, with 2 percent more surveyors reporting falls in numbers of new houses coming to market. This indicates that many homeowners are unwilling to accept reduced selling prices, so are not entering the market.

However, RICS North East spokesman for the residential market Richard Sayer, of Rook Matthews Sayer believes that beyond the statistics, there is still some good activity in the market. Many of his offices have maintained activity over the month, but he also called for sellers to be realistic.

He commented: “The key is for sellers to be realistic. While we are not always able to bridge the gap between a purchaser’s offer and the seller’s expectation, overall transaction levels have been maintained despite our usual expectation of a sharp seasonal drop off when school holidays commence.”

He also noted that mortgages remained a problem, despite slow changes creeping in.

He added: Our expectation is for a seasonal dip now until mid-September but there are no indications that the slow gains in activity made in the first half of the year will disappear and we expect a generally steady market in quarter three, with prices remaining flat, which will be much welcomed after the sharp falls in the second half of 2010.

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