Market Update September 21, 2013
September 21 – The buyers’ strike shows no sign of coming to an end at the moment. Pending listings for all areas & types stand at 7,163 and UCB listings at 3,045. That total of 10,208 listings under contract is the lowest we have recorded since February 12, 2009. It is also down 12% from a month ago. Monthly sales are now about 4% below last year when just a month ago they were 3% higher. The Cromford Demand Index™ stands at 90.3. This is its lowest level since December 11, 2008. For whatever reason, buyers have lost a lot of enthusiasm over the last 8 weeks and it is still waning.
Of course this weak demand is more than enough to balance the very weak supply so pricing pressure is still upwards for the time being. However the upward pressure has dropped by more than 50% in the past 2 months..
The question is: will the continued rise in prices cause buyers to back off even more, or will they realize that they need to get off the fence and get back in the market before affordability gets worse?