Slowdown Slows Down House Sales

It is taking longer to sell houses than at any time for seven years, according to research by property research group Hometrack. In December sellers have had to wait an average of 8.3 weeks before they received an offer for their property. Hometrack has been tracking this figure since the beginning of 2001. Just twelve months ago the figure was 6.7 weeks, and it dropped as low as 5.8 weeks in May this year. The numbers add evidence to the housing market slowdown, which now seems undeniable. Estate agents have been having difficulty selling houses in recent weeks, mortgage lenders have not been agreeing to as many loans and house prices have been stagnating or falling in many parts of the country. Home buyers have suffered five interest rate rises between August 2006 and July 2007, and higher food bills and petrol costs have added to their woes in recent weeks. The UK’s biggest mortgage lender said that the number of first-time buyers was at its lowest since 1980, with so many priced out of the market. While house prices continued to rise throughout most of the year, house became more unaffordable, and the slowdown may help to bring them back into the range of some buyers. Although the Bank of England cut interest rates in December to 5.5%, experts say that the quarter point cut will have little effect on the housing market and more will be needed. Hometrack suggests that sellers will need to lower their asking prices if they want to shift their properties quicker. Head of research Richard Donnell said: ‘People are just going to have to get more realistic. In some regions, it is taking over 10 weeks to get an offer on a house.’ Mr Donnell added: ‘A big proportion of people who move house do not need to - they are only doing so because they can afford to. At the current pricing levels, they might as well just sit on their hands and wait for the prices to come down.