Slump visable for estate agent signs
For those who, like me, use estate agents’ boards as an informal indicator of what is going on in the market, the downturn is visible on the streets. There are plenty of “For sale” signs on show, though not yet on the scale of previous housing downturns I have known. Potential vendors who do not have to sell are holding back. Properties for sale are joined by “To let” signs, something we did not see too much of in past cycles. The increased supply of rental properties has, of course, been a feature of recent years.
These days, it is something of a surprise to see a “Sold” sign outside a house, though it is not as rare as you might expect. Even in these straitened times, good houses are selling, as some buyers look beyond the current period of weak prices. Less desirable properties are sticking, but then they often do even in boom times. “Let by” signs are quite common, reflecting the strong rental demand out there, some of it from frustrated first-time buyers.
These visible signs of what’s happening came to mind when I looked at some of the recent data on the market, notably the Bank of England’s figures for approvals for new mortgages (as distinct from remortgages). These dropped to 64,000 in March, from 72,000 in February – 44% down on the 115,000 figure recorded in March 2007.
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