‘Online agents’ out-performing high street in growing sales, says bank

Research analysts at bank Credit Suisse have said that there has been further growth in the number of properties sold by online agents.

In a new report – the latest of its monthly surveys of the online estate agency industry – Credit Suisse says that in August, online agents out-performed the high street in growing the number of sales.

Its report says that month on month, online agents exchanged more properties than they had done in July, and reduced the average length of listing by 17%.

The report comments: “This trend of improving sales is in-line with that reported by ‘traditional’ (branch-based) agents in the Residential RICS Survey, where agreed sales improved to 0% from -32% in July.

“Nonetheless, given the flat reading from ‘traditional’ agents and positive reading from the online sector, it does appear that the online operators have outperformed the traditional agents on sales growth in August.”

Credit Suisse, which says it covers 90% of the online agency market, said that new instructions growth eased for online agents, but nevertheless the total number of properties listed grew.

Its report says: “The aggregated balance of respondents reporting a rise in new instructions was 50% in August vs. 63% in July. This compares to a new vendor instruction reading of -5 in the August’s RICS survey.

“Total number of listed properties has accelerated with a net balance of 83% of respondents reporting a rise in the number of properties listed on their site (vs. 63% in July).

“The trend of increasing stock levels for the online agents is the single largest differentiator between the online operators and branch based agents, for whom average stock levels per agent remain at record lows according to August’s RICS Residential Survey.”

Credit Suisse compiles its monthly surveys on the basis of online agents’ answers to eight questions. From the answers it creates a net balance answer. For example, if 60% of respondents report a rise in new vendor instructions and 20% report a decline, the net balance score would be +40.

The Credit Suisse reports no actual numbers or prices, just as the RICS does not.

x

Email the story to a friend



9 Comments

  1. Robert May

    Perhaps once NTSEAT and the redress schemes start  clamping down on  portaljuggling  Credit Suisse, Motley Fool and all the other groupthink Woodford schmoozers will be left looking  like brown snout, sycophants who’ve been a bit too gushing about the King’s new frock.

    Report
  2. AgencyInsider

    ‘Lies, damned lies, and statistics’.

    Credit Suisse has fooled itself with thinking RICS resi survey is an accurate reflection of the market. And without them publishing the actual numbers and prices this ‘news’ is pure conjecture. And probably wrong.

    Unfortunately the Usual Suspects will make hay with it and the general media will swallow it. Plus ca change.

    Report
  3. sb007ck

    If i am reading this right, and i may not be with all his bank type speak! He is saying that the % growth was greater with call centre agents, not the actual volume of listings. So in essence a company who is 2 years old and lost £10.8 million pounds last year had a good August?

    I guess every lame duck has to do well now and again. Keep the laughs rolling in Credit Suisse and the other people who are propping up PB etc.

    Report
    1. Robert May

      I am fairly certain the losses reported back in Maty were higher. Combined with the £25,000,000 Bruce promised investors for  2016  he was  about £37 million behind his own predictions  for the year.   Even on  the  random scale of randomness, shooting at fleas with a battleship, that is a very long way off target.

      Report
  4. rdw70

    I switched off after the first line….Anyone who still thinks ‘on-line’ and ‘traditional agents’ exist obviously has no knowledge of the estate agency industry and therefore no reason to be commenting or writing articles. #muppet!

     

    Report
  5. Chri Wood

    “Credit Suisse compiles its monthly surveys on the basis of online agents’ answers to eight questions. From the answers it creates a net balance answer.”

    So, a bank report about the strength of the call-centre market within the property market as a whole, compiled by asking questions of the call-centre market agents themselves. Those would be the same agents who continually are found to be misleading the public (and shareholders) in its advertising, public claims and by flouting the law?

    Given that Switzerland is supposed to be the pinnacle of financial probity and security, this is not one of its finest days work.

    Report
  6. International

    With the highest regard for all RICS members, isn’t it about time the RICS stopped issuing data on sales.

    RICS agents now form the minority of selling operations in the UK and when issuing statements such as this, the banks and their analysts should use statistics from an amalgamation of selling agents data.

    Otherwise all announcements will be misleading to say the least.

    Report
  7. RealAgent

    So apparently the drop in sales immediately post Brexit only affected high street agents not online ones!?!!

    I have genuinely never heard a comment as ridiculous in my entire life.

    Report
  8. Jonnie

    Splendid bit of work,

    A funny bit of the industry that is resolutely quiet about how many they actually sell, most recently the marvellous Ms Beeny with her ‘hundreds’ a month and a refusal to quantify

    Can we assume the bank managed to squeeze this bit of trivia from the budget boys (and Girl) and has succeeded where everyone else has failed?

    Oddly the only time people don’t want to talk about something is they know the answer will make them look a bit….well, rubbish.

    Bellendery of the highest order and im pleased to observe nothing short of what we expect with expectations of a straight answer being appropriately low.

     

    Jonnie

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.