1
Sep
A riddle wrapped in a mystery inside an enigma
Nick Churton of Mayfair Office looks into the puzzling state of
the property market this autumn and finds that, despite the
conflicting signs, there is reason to be very optimistic.
What exactly is happening to the property
market at the moment? In many parts of the UK August has been
one of the most active on record and this following a rather busy
July. So, after the dark and dreadful credit crunch months,
what on earth is going on? After all the ‘property
experts’ seem to think that the market could take years to
pick up again.
This underlines the fact that nobody can
really be a true expert forecaster in property. We can
expertly deal with the market we are in, and skilfully help buyers
and sellers to make the best of the prevailing conditions.
But to try and out-guess the property market is an entirely
different proposition.
So if we aren’t going to be foolish
enough to try to foretell the future, at least we can try to
understand the present. What the gurus couldn’t factor
in was the behaviour of the British house buyer and seller.
Neither group is silly. Homeowners understand that there is a
strong chance the market has hit the bottom and now the only way is
up. So the longer they wait the more they may get for their
property. Buyers, on the other hand, are keen to buy now as
they anticipate that this is the perfect time to purchase.
Indeed, latest figures show that residential property is now at its
most affordable for thirteen years.
The recent property activity is a riddle, and
the mystery of where things will go next does lie within the enigma
that is the market. But one thing we do know: those astute
buyers and sellers do understand a thing or two about supply and
demand. Reluctant sellers mean a dearth of property coming
onto the market and that, in turn, is stimulating a level of
activity that is now causing competition between many buyers.
Hence the recent surge in property activity. In some areas
this means multiple offers and even rising prices.
So, what a great position to be in.
Don’t sell and you will make money. Buy now and you
will make money. It’s win-win and that is a concept
that should be no riddle, mystery or enigma to anyone.
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