September 2009
At the London office of Stacks, we constantly monitor the ever changing market conditions within the property industry, which gives us an insight in to what is really happening ‘on the ground’. All estate agents are currently reporting a severe lack of quality stock and predictably the lack of supply and increased demand can only drive prices in one direction. However, whilst good quality stock is selling quickly, mainly fuelled by cash buyers looking to take advantage of current prices, we are cautious as to where this will lead the market over the final quarter of this year. This is in spite of the fact that un-employment figures remain high, and the city optimists are only whispering signs of the beginnings of an economic recovery.
Leading agents have cautiously submitted their second quarter reports, stating that prices are beginning to rise slowly with some reporting rises in the South West of London of as much as 6% in the last three months. It must not be forgotten that this level, albeit enthusiastic, is still well within 20% fall from the peak figures of September 2007.
It is widely assumed that many vendors are un-willing to surrender their SVRs (Standard Variable Rates) due to the current job security situation and this is in turn dictating the pace of new instructions to the market. The real test will be the dawn of the Autumn market in September and those vendors who have held on to their properties for as long as they can. Estate agents across London have reiterated to us the lack of market appraisals they are being invited to, and this has to be a key indicator to the supply remaining low.
It is our recommendation to clients who are in a strong financial position to buy now and seize the opportunities as they arise. That being said, it is essential to proceed with caution and with sound advice and thorough research. Stacks London continues to be competitive with our pricing structure for what is now more than ever a necessity to buyers looking to make such an important financial decision.
If you would like any advice or are interested in using a buying agent to help you through this turbulent time, please do not hesitate to contact either Adam Keville or Sara Ransom on the e-mails or telephone numbers above.
