House sales in Coventry and
Warwickshire have dipped by 14 per cent in the last quarter, according
to the Royal Institution of Chartered Surveyors.
The latest three-monthly
housing survey by the RICS, to the end of July, shows “buyer
fatigue” in the area, although house
prices have remained relatively stable.
Harvey Williams, RICS national
and regional housing market spokesman said:
"The figures
demonstrate the balance of power shifting from seller to buyer.
"For months the
Coventry and Warwickshire housing market has favoured the vendor
with prices remaining buoyant.
“However the lull in
activity in the period to July shows that buyers are reluctant to
meet inflated asking prices."
Nationally, the RICS survey
reports a sizable drop in sales activity, with a fall of 7.5 per cent
from June to July.
The drop reported by estate
agents in Coventry and Warwickshire is double that of the national
picture.
In terms of price, the report
shows evidence that a North/ South divide continues.
Chartered surveyor estate
agents in the South have recorded a plateau in sales activity,
compared to an acceleration of prices in the North - a reversal of the
trend over the previous 18 months.
Mr Williams added:
"It is evident that
potential buyers in Coventry and Warwickshire are exercising an
element of caution.
“Jobless figures revealed
last week by the Office of National Statistics show a healthy
reduction in unemployment, however the number of jobs available in
the manufacturing sectors shrunk.
“As Coventry and
Warwickshire has such a great dependence on its industrial and
manufacturing base this is a worrying trend - the heavy reduction in
house sales for July is a result of this.
"Interest rates are
also on a knife edge and although figures released by different
sectors make for confusing reading, there is still a real
possibility they may rise earlier rather than later.
“Clearly, prospective
buyers are wary because of this aspect as it could have a knock on
effect and increase mortgage payments.
"All the signs show
that vendors are going to have to be more realistic about the asking
price of their property.
“An element of greed has
crept into parts of the region's housing market, but some buyers
won't bite.
"As supply catches up
with demand, over-optimistic vendors reluctant to reduce prices are
going to find that their property does not sell easily."
