With the summer
behind us Cliff Hall of Arlington
& Hall Estate Agents takes a look at how the property market is shaping up
this autumn.
Some
commentators consider that the property market is still over-valued by up to
20%. And that somehow it is tenuously suspended above reality by the slender
threads of quantitative easing,
very low interest rates and a little market traction generated from central
London. These people predict a hard landing. But is that very likely? Although
there are doomsayers who predict more falling property prices theirs is an
overall view and each region will behave differently: there may well be enough
activity to ward off further slippage. Along the South Coast there certainly seems enough
life in the market generated by those making non-discretionary sales and
purchases. If this continues until the banks and other lenders finally sort
themselves out and do what they are supposed to do, then another bump should be
avoided.
But where is the
activity that we do have coming from? Buying and selling property in this
market is certainly not just the exclusive province of the fortunate: it is the
exclusive province of the determined. There seems to be plenty of people whose
lives and circumstances are leading them to buy property and it is this group
that is keeping the market as buoyant as it is, these who in time will no doubt
be very pleased that they acted when they did, as this is a market of certain
opportunity. To all those politicos who insist we have a housing crisis this
may all come as a big surprise. They need to accept the fact that what we really
have is a crisis of mortgage lending coupled with low confidence – it is the
economy. In some respects a housing crisis may even be preferable to the
perfect storm we have now, which is why our leaders may be calling it that.
For those
determined souls who are coming into the market there are some pitfalls to
beware of. Sellers with too ambitious an asking price and unreasonable
expectations in the prevailing conditions will find things tricky.
Buyers should
also remember that while the market favours them it does not favour them
completely. Realistic offers will be treated, at worst with polite
encouragement. Unreasonable offers will not.
But treat
buying, selling and others – including us estate agents if you will - with a
little understanding and there really are some great deals to be done, even in
this market. If you are determined, then welcome to the land of opportunity.
