Partner Article

North East Housing market remains subdued

House sales in the North East dipped slightly in the last quarter as holidays, economic uncertainly and lack of mortgage finance showed its full effect.

While the number of completed sales in the three months to August fell to 13, average stocks remained stable at an average of 85, from 83 in July.

These figures will be encouraging for many estate agents, but according to RICS North East housing market spokesman Richard Sayer, the industry is not yet out of difficulty.

“For the time being RICS indicators suggest that demand for homes remain broadly steady, albeit at relatively low levels, despite the renewed bout of economic gloom.

“However, the risk is that the worsening economic picture will gradually begin to have a more material impact on sentiment and discourage potential house purchasers even where mortgage finance is available.”

Over eighty percent of respondents to the survey felt that general economic uncertainty was the reason why sales levels were subdued, while an additional 58 percent cited lack of mortgage finance as a factor impacting negatively on transactions.

These factors have in turn affected the August pricing picture, with 28 percent of surveyors reporting prices fell rather than rose, a drop from 36 percent in July.

Despite this however, sales expectations remain positive for the coming months, with many hopeful of a pick up in activity.

This was posted in Bdaily's Members' News section by Ruth Mitchell .