THE North West’s housing market is bucking the national trend after surveyors in the region reported a slight rise in transactions.
Yesterday, the Royal Institution of Chartered Surveyors (RICS) reported renewed interest from potential buyers, but added it failed to ease house price falls or boost sales during January.
The RICS said buyer inquiries rose for the third month in a row during January, with 16% more surveyors reporting an increase in interest than those who saw a fall.
Historically, low interest rates and recent steep house price falls are thought to be tempting buyers back into the market as they hope to pick up a bargain.
The return of house hunters boosted surveyors’ optimism about future sales, with 10% more surveyors expecting transactions to pick up in the coming months, than those who thought they would fall.
But the renewed interest failed to stop prices from sliding further during January, while sales levels also slumped to a new record low.
However, in the North West, the picture was a little less grim with surveyors reporting a rise in the average number of transactions per surveyor up to 11 from 10.
The region also saw a 9% increase on sales per agency over the last three months.
RICS North West spokesman John Halman, of Gascoigne Halman, said: “We have seen a strong pick-up in our enquiry levels and viewings since the New Year.
“Buyers are keen to try and pick up bargains while the market remains tight and mortgage finance is limited.
“This interest has yet to translate into sales, but transactions may pick up in the coming months once the government introduces guarantees for the issuance of residential mortgage backed securities.
“The recent cut in interest rates may improve confidence for those on the margins and encourage buyers looking for more attractive finance deals.”
Nationally, a balance of 76.3% of surveyors reported price falls during the month, up from 73.9% in December.
Further falls are expected going forward, with confidence in prices dropping.
tonymcdonough
