NAEA offers mixed messages

Posted: 22 Dec 2008 05:08:53 GMT

            Property News - NAEA offers mixed messages

The National Association of Estate Agents (NAEA) has given a mixed outlook on the year ahead with the publication of a report detailing both falling prices and rising first-time buyer sales.

November figures for the housing market show that, for the third consecutive month, the number of first-time buyers entering the property market has increased, while, conversely, the average price of a property has continued its decline.

It could be possible that the two may be linked, as the average flat now costs just £118,334 - a figure sure to attract buyers, but the simultaneous phenomenon cannot continue for long.

The news is also negative for those who own property, as the threat of negative equity continues to draw nearer.

Chris Brown, president of the NAEA, said: "The glimmer of positive news that some of these figures reveal can give estate agents across the country some hope for a more prosperous 2009.

"The market is still waiting to feel the impact of recent interest rate cuts, and if the major lenders commit to making mortgages available to those who want to buy then the market should improve next year."

Homeowners selling to avoid negative equity could do well to put their homes online, as a great deal more buyers may see it on a website than in an estate agents' window.

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