Central London - Prospective new Buyers Jan2009 = 100
820k 840k 860k 880k 900k 920k 940k 960k 980k
100 150 200 250
50 0
Figure 17 Central London - sales agreed Jan 2009 = 100
100 120 140
JAPAN 5% A 10%
5% 7%
20 40 60 80
0 Number of Prospective NewBuyers
Central London - New Instructions to Sell Jan2009 = 100
Market Analysis Winter 2010/11
-35% -30% -25% -20% -15% -10% -5% 0% 5%
Central London - Sales Agreed Jan2009 = 100
UK housing market -
New Instructions to Sell INDIA 6% FRA 14% USA 3% AUS 2% Sales Agreed
GERMANY 2% SPAIN 5%
Figure 19 Sales properties on market Jan 2009 = 100
RUSSIA 16%
100 150 200
0
Central London -Time to Sell (WEEKS) 0
50 0
0 50
10% 20% 30% 40% 50% 60% 70%
0 0
Good quality stock is selling well and is achieving asking prices
-30% -20% -10% 0%
Properties on Market Average Monthly Sale Price Average Time frominstruction to sale agreed (WEEKS)
Central London - Sales Appraisals Jan2009 = 100
0 0 0 0 0
NY 2% %
-35% -30% -25% -20% -15% -10% -5% 0% 5%
100 120 140
20 40 60 80
10% 15% 20%
820k 840k 860k 880k 900k 920k 940k 960k 980k
Prospective New Buyers Annual Change (2010 vs 2009)
New Instructions to Sell Figure 18
100 150 200 250
ITALY 25%
Central London - New Instructions to Sell Jan2009 = 100
New Instructions to Sell Annual Change (2010 vs 2009)
Sales Properties on Market Jan2009 = 100
100 120 140
20 40 60 80
0
820k 840k 860k 880k 900k 920k 940k 960k 980k
sales Low demand putting off vendors
The property market across the UK as a whole is also suffering from a lack of stock. Low buyer demand and negative news on prices is discouraging vendors from entering the market and as a result new instructions have been down. Comparing the three months to November 2010 to the previous three months the number of new instructions fell by 14%. Compared to the same period in 2009 (three months to November) the number has dropped 20%. However, good quality stock is selling well and is achieving asking prices. (Figure 18)
Central London - Sales Agreed Jan2009 = 100
460000 470000 480000 490000 500000 510000 520000 530000 540000 550000 560000
100% 120% 140% 160%
20% 40% 60% 80%
New instructions to sell Annual change (2010 v 2009)
New Instructions to Sell Annual Change (2010 vs 2009)
-40% -20% 0%
10% 20% 30% 40% 50% 60% 70%
-30% -20% -10% 0%
Sales Appraisals
Central London - Sales Agreed Jan2009 = 100
As has been the case in London, overall numbers of properties on the books have remained fairly stable over the last two
100 150 200 250 300 350
50 0
Market Analysis Winter 2010/11 450000 monthly average sale price (£) 11
100 150 200
50 0
Sales Agreed
100 150 200
50 0
quarters. This again is down to low levels of churn in the market caused by low buyer demand. (Figure 19)
Average Monthly Sale Price
Mortgage availability and economic uncertainty keep buyers away
Country - Sales Appraisals Annual Change (2010 vs 2009)
Lenders have commented on the fall in demand for mortgages between September and November 2010 and we certainly noticed a decline in the number of new buyers registering with our franchisees. However, when looking at the year-on-year numbers it is important to remember that in 2009 there was an exaggerated number of buyers. Pent up demand from 2008 overflowed into 2009, leading to a rush of buyers and high levels of activity. Now that rush has died down and sentiment has reversed, we are experiencing the exaggerated effect of a 24% fall in new buyers when comparing the three months to November 2010 to the same period in 2009. (Figure 20)
Properties on Market
Figure 20 Prospective new buyers Annual change (2010 v 2009)
Country - New Instructions to Sell Jan2009 = 100
-35% -30% -25% -20% -15% -10% -5% 0% 5%
10% 15% 20%
460000 470000 480000 490000 500000 510000 520000 530000 540000 550000 560000
Prospective New Buyers Annual Change (2010 vs 2009)
Proper
10% 15% 20%
Sales Pro Ja
Prospective Annual Chan 200
-35% -30% -25% -20% -15% -10% -5% 0% 5%
Sales Properties on Market Jan2009 = 100
10% 15% 20%
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