The ‘wait and see’ attitude may have already paid off for some consumers in an easier transaction process. But it may also pay off for those waiting until early 2006, the National Association of Estate Agents suggested as it released figures from its latest housing market survey this week.

Unsurprisingly, the figures revealed that consumer activity slowed up in the run up to the end of the year. The number of house buyers on NAEA estate agents’ books was down in November, as was housing stock and the number of sales agreed. With Christmas fast approaching many buyers and sellers are now hanging back, said the agents’ body yesterday (21^st December).

Those who have remained on the market, however, can enjoy an easier sale process: the average number of viewings per sale also decreased in November, NAEA said.

Consumers revert to wait and see strategy

The number of home buyers on NAEA agents’ books reached a low this November. The figure per agent fell from 373 in October to 342, in a fall of 8.3%, as purchasers adopted a ‘wait and see’ strategy in the run up to Christmas.

The number of properties on agents’ books went from 61 to 56 per agent in November, in a decrease of 8.2%, as sellers decided to wait until after Christmas before making a move.

With limited time left to sell before the end of the year, the number of sales agreed per agent dropped from 13 in November to 11 in October, as homeowners chose to wait. This is still an improvement on the same time last year, however, when the survey recorded 10 sales per agent in the November.

Those who remained active in the November market benefited from a speeded up buying and selling process, with many anxious to get settled before the festive period begins in earnest. The average number of viewings per sale was down from 13 viewings in October to 11.

Realistic pricing aided smoother sales

The average difference between asking price and sale price dropped below 4% for the first time since July 2004 showing that sellers are now being far more realistic about the value of their properties. The average difference was down from 4.3% in October to 3.9% in November. With viewing numbers before a sale also down in November, it is likely that realistic pricing contributed to this smoother sales process.

Tenants settle in for winter

With those renting property now settling in for the winter, the number of tenancies terminated in November dropped to one per agent, compared with two the previous month, and four the month before.

The number of vacant properties also dropped, from 15 per agent in October to 13 in November, as prospective tenants move in before Christmas.

NAEA president Christopher Hall commented: "While confidence in the future of the housing market was reported to have increased in November, many are still hanging back."

"Buyers and sellers alike have reverted to the ‘wait and see’ strategy that was witnessed earlier in the year. Over the spring and summer periods in particular there was much uncertainty about the direction of the market and many buyers were waiting to see if prices would drop so they could pick up a bargain. Now that we are approaching Christmas, as one would expect people are choosing to wait once again. Amid much speculation about the movement of house prices in 2006, many are choosing to hold back until the New Year."

"It is good to see that sellers are being so much more realistic about the value of their property. This is undoubtedly contributing to the decrease in the number of viewings per sale, and makes for an all round easier process for everyone involved."