Prospective new home buyers have responded to current market conditions with the realisation that now is an excellent time to secure a bargain, reports SmartNewHomes.com.
In its monthly review of the new homes market, SmartNewHomes recorded a 2.6% fall in the price of new homes being marketed on its website, as vendors draw in their expectations to combat the lack of movement between buyers and sellers.
The total number of new homes available in June was down 4% on figures for May.
Apartments took the biggest hit, with stock prices down 2.6% and availability decreasing by 23% since the previous month, as first-time buyers continue to struggle with the lack of available credit.
However, larger family housing had a better month than apartments in June, according to the report, with less significant price falls recorded on semi-detached and detached properties, the latter of which recording an increase of 0.9% in the three months to June.
David Bexon, Managing Director of SmartNewHomes.com, said:
“Demand remains high in the new homes market, and while the current range of developer incentives on offer has continued to keep home buyers interested, it is encouraging to see stock prices coming down to a level that more people are willing to pay. However, there is still a discrepancy between these two figures.
“While overall property sales are clearly down on this time last year, buyers are still looking to enter the market and developers are helping many people to do this with a range of excellent incentives and schemes, which in some cases have allowed people to bypass financial constraints and secure a more competitive mortgage.”
Bexon adds:
“However, it is the smaller properties, geared towards first-time buyers, that will suffer unless more banks start relaxing their lending criteria and the Government takes decisive action to alleviate stamp duty for this group. As part of their extensive offering, developers are frequently footing the bill to pay stamp duty and deposits but there is only so much they can do.”
See Also: Press Releases (379)
Date Published: 21 July 2008
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