Property industry leader worried about 40% sales stock decline

Propertymark CEO says overheated market is persuading too many vendors to hold back from selling in case they can't find somewhere to buy.

nathan emerson propertymark

Trade body Propertymark says it is worried by research among its members that has revealed a 40% reduction in sales stock since the New Year.

Its latest sale report shows that an average estate agency branch has approximately 23 properties available, a 38% decrease from June 2020 and June 2019 and a 40% decrease since January 2021.

But despite the steady decrease in available stock over the past seven months, demand for properties to buy remains high with an average 19 people taking a serious interest in each property.

Consequently, 40% of homes have been selling over the asking price.

Propertymark CEO Nathan Emerson (pictured) says the reason for this imbalance is that many sellers have seen the headlines about the ‘huge demand’ and are nervous about joining the market and selling quickly with nowhere to go.

Boom market

The current market is very similar to the 2008 boom market, he adds, claiming that many people moving home don’t understand how ‘being in a position to proceed’ is the most important factor for those preparing for a change of address.

“Very few people can buy without selling, so having a buyer waiting gives you an edge over those you may be competing with,” he says.

Emerson also warns vendors that those who wait until they find a property to buy before instructing an agent to sell their existing home is likely to be problematical.

“It’s also important to remember that the average time being taken for a sale is approximately 16 weeks to exchange and [therefore] the likelihood of not finding an onward property [within that window] is very small,” he says.

Read more about the sale stock decline.

Pic credit: Chris Watkin.

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