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I've noticed less property coming onto the market as well, I assume people afraid to move for the same reasons.
This is always the bit that stymies "bargain hunters" in the property market. When it feels like the market is soft or prices are actually falling, sellers that have the ability to wait it out will do so. People feel like they have the right to sell their house for at least purchase price + stamp duty paid - anything less is an insult.
I've noticed less property coming onto the market as well, I assume people afraid to move for the same reasons. Swings and roundabouts?