Rightmove reports improving demand statistics 19.05.2009

Author: David Whittaker Posted on: 19 May 2009

This month's move of 2.4% comes hard on the heels of a 1.8% increase in April. In part this has been driven by only 61,000 new instructions in the last month against 135,000 this time last year. This is the lowest figure since May 2003.

Other driver's of this rise are those vendors trying to trade-up but because mortgages require greater deposits they have less ability to reduce their sale price without compromising their new property acquistion. Some vendors are just feeling more bullish about the market and believe that the market will rise to their level in time and can afford to wait a while.

The need for investors with cash looking for a "safe" haven with a running yield of 4% or higher is also having a benefiial impact on vendors as these investors are capable of buying not just one property but several at a time.

Whilst it is too early to call the bottom of the market these are encouraging signs of a levelling out but trends will vary region by region across the country.

Author: David Whittaker