Shortage in the number of houses for sale driving prices upwards

Shortage in the number of houses for sale driving prices upwards
Date of Publication: Wednesday, 15 January 2014 14:56

The dwindling supply of houses for sale is driving prices upwards and forcing buyers to throw their carefully drawn budgets out of the window.


Buyers are being warned to expect higher prices than they had initially anticipated, as the number of listings continues to fall in major cities.


The number of available properties was down by almost 20% in December from the same month in 2012, according to SQM Research, while listings were down by over a quarter since November.


Consequently, buyers who have postponed their search for a house until the New Year may now expect to pay much more than they might have done several months ago.


SQM, the firm that conducted the research, said the reduction in listings was especially steep and that the number of properties had reached the lowest level since its records began in 2008.


The tightened market conditions may be proving detrimental to the market, with people becoming more reluctant to sell as concerns grow about finding another home.


SQM warned that the conditions may continue to make life difficult for buyers for the foreseeable future.


"It probably won't get any easier for some time and will take a rise in interest rates to turn the trend around," said SQM's managing director, Louis Christopher.


"There is no reason to believe the market will slow down in the second half of this year unless there’s a rate rise", he added.


"If rates stay put throughout 2014, the market may continue this run well into 2015."


James Booker


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Wednesday, 15 January 2014 14:56
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