Market Comment

Summer 2011

The start of the New Year seemed to bring a degree of optimism to the property market, with agents reporting a significant increase in new applicants registering, an increase in viewings and in contact from potential vendors.  However, as we progressed through the early part of the year, this activity seemed to slacken somewhat.

As expected in a fairly static market there has been the usual continuing round of price reductions and/or the changing of selling agents on properties that have been available for some time, but new quality properties coming to the market have remained very thin on the ground.

The Easter/Royal Wedding/bank holidays allied with the unusually good weather seemed to create a three week break, with a noticeable reduction in activity in the property market – rather more like August than April – whilst activity returned to the market in May it seemed to be at a rather lower level than before the break.  August is seeing its usual reduction in activity.

The continuing credit restrictions, European debt issues, poor economic indicators, the Cuts, increasing living costs and inflation are all undoubtedly having a negative effect on the property market in general – it will be interesting to see how the Autumn market reacts.

However the number of good quality properties coming to the market in all price bands remains at a low level, coming as it does from a relatively small finite supply and, as always, there are good buyers around for these.  This can lead to the rather unexpected situation of quick sales and competitive demand (leading to some best bid situations) in this sector, whilst the bulk market and more secondary properties are having to reflect the current market trends and reduce prices to very competitive levels if they are to effect sales.

However to secure a good quality property that is new to the market and priced realistically requires quick reactions – if you delay your viewing you are likely to miss out.

There are still a significant number of vendors who, perhaps sensing the slower market conditions, are not prepared to openly market their properties although they do wish to sell at some point.  The suspension of HIPS’s has allowed agents to go back to the time-honoured practice of ‘marketing quietly’ e.g. seeing what interest there may be in a property, without going to the expense of marketing and brochures.  These properties are available to purchase – if you can find out about them, but beware – often their asking prices can be optimistic!

In what can seem a rather confusing and unpredictable market, the need for professional assistance is more important than ever:

To be able access the whole market – properties openly marketed together with those covertly available.

To establish whether the price guide is realistic or over optimistic.

To negotiate the best deal on behalf of the purchasing client – taking into account all the circumstances, including the expectations of the purchaser and the situation of the vendor.

The engagement of a professional buying agent is probably as important and valuable now as it has been for some years.