27 April 2009
The ‘For Sale’ signs are back!
18 months after the residential property market began declining, there are signs of movement once again, both on paper and out on our streets.
The first four months of 2009 have seen the majority of estate agents a great deal busier than before, with buyer activity and the number of transactions put together markedly increased.
At Hart Brown, our levels of new instructions are at 75% of the boom times in 2006 and 2007, up from 35% (the low point of 2008).
The increase in volume, but not price, is expected. Prices are still fairly static but arguably far higher than those of four or five years ago.
Sellers wish to see an exchange of contracts as swiftly as possible to secure their buyer whilst buyers have the added pressure of having to find an attractive mortgage in a diminishing mortgage market and the prospect of considering their long-term employment future. Buyers will have noted the extension on the stamp duty freeze announced in the recent Budget, on properties worth up to £175,000, until the end of the year.
Although we are not likely to see a bull market for some years hence there have been reports of slight increases in the value of properties.
The more positive the general feeling, the more likely the market will pick up. Sellers are now being more realistic with regard to the values of their property and, with the base rate being so low, it looks like the market in 2009 will be vastly better than that of last year.
Agents are now desperate for more properties as those coming onto the market are being sold rapidly if reasonably priced. The new regulations applying to Home Information Packs, since 6 April, to make them more comprehensive, should also place buyers in a better position to move quickly once they have found a property.
For further information contact David Knapp on 01483 887772.