The gap between asking prices for homes and the price at which they sell is widening, according to the National Association of Estate Agents (NAEA).
NAEA members have also reported falling numbers of buyers and homes for sale and a falling proportion of first time buyers.
A survey of NAEA members found the gap between asking prices and actual sale price has reached 4.5%.
The NAEA says a number of external pressures are causing buyers to be prudent, though the number of sales has remained static.
Stewart Lilly, president of the NAEA, says: “The figures reported in February echo the current climate of confusion that is clouding the property market at present. Invariably, the global credit crunch, especially the US situation, has had a knock on effect, which coupled with consumer inflation, is placing continuing pressure onto the property market.”
The number of buyers on estate agents books fell from an average of 276 in January to 243 in February, a 12% fall. The percentage of first time buyers completing sales fell to 11.7% in February.
Lilly says the fall in first time buyer numbers is disappointing, but hopes this section of the market will see a recovery as prices begin to reflect market conditions.
The NAEA says it will continue to call for a reduction in interest rates to help the housing market and prevent an economic slump.
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