MARKET COMMENTARY
One of the questions I am constantly asked by buyers and sellers alike is "what is the market doing?". There is clearly a great deal of confusion as to how the market is currently, therefore I thought I would outline our views as we currently see them.
Without question we live in difficult economic times. You would have had to be resident on Mars not to be aware of the general belt tightening, difficulties in obtaining mortgages and the reports from certain newspapers of a "house price meltdown" whilst others predicting "house price rise" – confused ?
Well what is actually happening?
For too long, media commentators have talked of "the UK housing market" but this is a market that cannot be analysed as one entity. A little online research will give you access to dozens of different indices, data and trend predictions that will all differ and confuse you further. Whilst these figures may give a general indication, they will vary enormously from region to region.
2011 has started on a buoyant note with most estate agents experiencing a considerable uplift in demand compared to the latter part of last year. Whilst there is an air of realism and sales are still being made at good prices, the picture differs according to which part of the country you live in and what type of property you own. A recent piece of quality research into the housing market divided residential property in the UK into three sections, prime, secondary and tertiary and as a result produced an informed and balanced piece of research as to how the value of your home will perform in the next five years.
So, what about South Buckinghamshire? We are situated in a fortunate geographical location with excellent connections to Central London, great schooling and a good mix of property. The area we operate in, as a firm, would classify as a "prime" location in the study mentioned above, and the trend predicted for the future is for house price growth rather than further falls. Houses are selling, if subject to good marketing and realistic pricing. Many sellers are not desperate as they benefit from low interest rates and will reject unrealistic offers out of hand. Buyers are reporting a lack of new properties coming onto the market but they will not overpay for houses they do not feel are worth their asking price or anything near.
So, how will 2011 pan out ?
Sellers setting realistic asking prices will have the results they seek as will buyers who make realistic offers. Whilst there is now serious talk of an interest rate rise this year, the supply of property in our area will continue to be limited and as a result buyers will have less by way of choice. I am not going to be so bold as to predict a significant price increase this year but I feel those who are buying now will see the positive benefits within the next 2 to 3 years.
Richard Foreman
2011