Citation
(1998), "Housing market hiatus as buyers ponder rate rises", Property Management, Vol. 16 No. 1. https://doi.org/10.1108/pm.1998.11316aab.001
Publisher
:Emerald Group Publishing Limited
Copyright © 1998, MCB UP Limited
Housing market hiatus as buyers ponder rate rises
Housing market hiatus as buyers ponder rate rises
The housing market rallied a little after a traditionally quiet August, according to the Royal Institution of Chartered Surveyors (RICS) housing market survey for England and Wales for three months ending 31 August 1997.
As the country sweltered, it seemed as if the housing market was beginning to cool. Overall the net balance of contributors noting price increases fell slightly from 54 per cent to 48 per cent.
Only in London up from 56 per cent to 61 per cent and the West Midlands (up marginally from 57 per cent to 58 per cent) did the figure for August rise.
Elsewhere in the country evidence is mounting that potential purchasers are no longer prepared to pay over-inflated prices. Notable falls were seen in the North West (down from 52 per cent to 37 per cent) the East Midlands (23 per cent to 15 per cent) and the South East (77 per cent to 65 per cent).
The level of sales and of properties coming on the market both rose slightly over the period and many are confident that instructions will increase as autumn approaches. There remains a shortage of property for sale in popular areas.
RICS Housing Market spokesman lan Perry commented:
There are some indications that the market has tired of high prices. This, coupled with recent series of small interest rate rises, has alarmed some prospective purchasers who fear this might be the start of a continuing trend.
Nevertheless, it is a measure of the market's strength that at this traditionally quiet period many agents reported that new instructions still number too few to satisfy enquiries from an ever increasing number of applicants.
The autumn is a busy season for the housing market so we expect more sellers will be encouraged to put their properties up for sale, helping to satisfy the huge pent-up demand. We expect an active autumn market.