If you are a first time buyer now could be the time to buy. House sales are declining, but so are prices and according to the National Association of Estate Agents (NAEA) the average difference between asking price and actual sale price has increased by 4.5%.

The NAEA says current financial pressures are forcing sellers to be prudent. The number of houses for sale and buyers on estate agents books fell throughout February. However this could be good news for the first time buyer.

“It is disappointing to see that the percentage of first time buyers took a drop this month,”comments Stewart Lilly, NAEA President. But he adds: “We are hopeful that this sector of the market will recover and continue to grow as prices reflect the prevailing market conditions. The market is much more favourable to this target market.”

Overall the number of house buyers on estate agents’ books dropped from an average of 276 registered per agent in January to 243 in February 2008.  This figure is the lowest recorded since the NAEA survey started.  NAEA members across the UK reported an average of 74 properties for sale in February compared with 83 in January 2007. 

“The figures reported in February echo the current climate of confusion that is clouding the property market at present,” says Lilly. “Invariably, the global credit crunch, especially the US situation, has had a knock on effect, which coupled with consumer inflation, is placing continuing pressure on the property market. However, we still have a long way to go before we see the difficulties of the late 1980’s repeating themselves!”

The only problem for first time buyers, in the current financial climate, is finding a good mortgage deal.