Housing demand increases but sales dip
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Property demand rose in June as housing stock levels decreased for the first time in four months.
The National Association of Estate Agent’s market report for June showed an increase in the number of house hunters registering with an agent across the country.
The average branch figure rose from 265 in May to 279 in June as an average per branch but sales made to first time buyers remained the same as May at 21%.
The number of houses available for sale saw a slight decrease from 62 per branch in May to 59 in June while the number of sales fell from eight to six per branch on average.
NAEA President Michael Jones says sales are not reflecting demand possibly cause by the expected Capital Gains Tax hike.
He adds: “It’s encouraging to see that increasing numbers of buyers have entered into the market. There is clearly demand for property at present but these figures suggest that the banks are still being restrictive in their mortgage lending policies to buyers.
“If the banks ease up on mortgage lending restrictions then with a bit of luck, the summer months will see the sales figure rise in line with demand.”
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