October 2009
As Autumn arrives and the leaves begin to fall, it appears that property prices are doing the reverse. Our hopes that there would be a sufficient supply of new stock to the market during the last quarter of this year have been thoroughly quashed. So, we are having to rely heavily on our network of estate agents and contacts which have proven to be a key to our success over the last few months. The words we all dread such as ‘gazumping and sealed bids’ seem to be more commonplace again, and we have found ourselves using our name and our reputation more than ever to ensure that our buyers are the first through the doors of any new instructions. It is important to note that we have also seen a notable increase in both previous and new clients coming back to us having explored the market themselves but with little or no success.
With companies such as Nationwide reporting that prices are now back to the levels of September 2008 (rises of approximately 0.9% across the country in the last month) and the average home price now standing at £161,816, it appears that this is bringing even more buyers who wish to speculate fu to the market. Key estate agents are also reporting increases of as much as 1% in August bringing prices 6% higher than they were in March of this year (widely considered to be the lowest point of the market)
However, we are still cautious as to how far these price rises will go and for how long. The economy is still extremely fragile with the continuation of reported redundancies in the city, and un-employment still rising. Therefore we believe it is even more important that our clients are fully updated and that we inform as to what is happening in the market place and where the values lie. This ensures that our buyers do not get carried away in bidding frenzies which are now common place in some of the prime residential properties.
The most pertinent questions being asked of the property market at the moment is ‘how long do we think this will go on for’ and ‘will there be another crash’? Rises at this accelerated rate are rarely ever sustainable and our belief is that in January, property owners having recouped some of the equity they lost over the last 18 months will then be looking to move on. However, there would have to be a substantial influx of property in order to satiate the current demand in the market.
As we have said before, the key to buying now is to have as much information and expertise available and using an established buying agent to help represent you makes a sensible judgement.
If you would like help to find a property or have any questions, please do not hesitate to contact either Adam Keville, or Sara Ransom on the numbers or e-mail addresses on our website.
