Analysts are trying to figure out why homes are not selling, or rather why buyers aren’t buying. Homebuilders have lost confidence that their business will change much in the few months ahead. Houses for sale are flooding the market. Data is showing that listing companies are having record numbers of views on their websites, yet no one is buying. Instead new home listings are out doing approved mortgages.

Analysts are busy trying to figure out what truly is holding back new home purchases. It is important that people make purchases, especially large ticket items. Consumer spending contributes a major part to the UK economy. When someone buys a house they tend to buy electrical appliances, furniture, household goods, garden and yard tools, and other items to outfit a home. So with a home purchase the economy sees spending in many different levels. No wonder analysts want to understand why people aren’t buying homes.

One reason many say they are not buying is because they can’t. They cannot afford lender’s deposit requirements. Lenders are asking anywhere from 25 per cent and up for new mortgages. Also, with new requirements by the Financial Services Authority there are groups of people such as the self-employed that are having a difficult time due to requirements lenders now have for earnings verification.

Other than the difficulties due to lenders, another reason people are holding back from purchasing a new home is because of the economy. Many fear job loss. The government is planning a massive spending cut. While public sector jobs will be the target, some private sector jobs will be indirectly affected. The economy in general is putting a strain on many businesses and so people may be holding back due to the economy’s uncertainty. Many are deciding to take a "wait and see" attitude and others are investing their money in other ways and holding off on a major purchase of a home.

Many people are trying to make sure they get the best deal and are taking longer to jump into the process and to complete deals. The interest rate level is great and the latest reports tell everyone the rates will stay low till next year, so there is not a rush to react due to changing rates. With the increase of new houses on the market, the choices are many, so people are taking longer to look instead of worrying that a house will be taken out from under them. They also are thinking maybe a better house will come to market tomorrow, or that if it stays on the market a bit longer the owners will come down in the asking price.

Analysts are busy studying the market and making predictions and it is obvious there are many factors at play as to why there are fewer buyers. As the available homes to purchase grows, and demand lessens home prices will continue to fall. It has definitely become a buyer’s market. Lenders will have to make it more attractive as well as possible for people to borrow, sellers will have to make homes competitive, and the economy will just have to wait for each buyer to decide to contribute their part, and if one thing is for certain, the economy needs home buyers.