As usual a host of different, conflicting reports about the state of the housing market.

It's always interesting to see how the media digest and report on the same data in very different ways.

There is no doubt that market conditions are tough but property is selling and judging by the amount of traffic to our own website there is clearly an underlying demand. I heard on the radio an economist describe the housing market operating in a 'zombie like state'.

This is probably over the top but in a generic sense he is probably right. Lenders are tight on the money supply and some buyers who see values stagnant are sitting on the fence.

In reality the people who want and need to move are just getting on with it. Correctly valued and priced property is selling and selling quick. Our own advice to Vendors is to get it right first time and to keep the asking price close to the real value.

We have and are being instructed to sell perfectly good property that has been on the market with some of our competitors at an inflated price and are selling quickly due to the clients taking our advice on the correct pricing strategy.

Ed Mackenzie Smith

April was an odd month. Buyers holding off but not because they are spoilt for choice. We carefully monitor the amount of property coming to the market and the numbers are fairly consistent. In other words, slow. We don't see this changing until interest rates rise.

However, people can't hold off for ever. So both buyers and sellers at some stage need to make decisions. We need to be realistic with our valuation advice in the first place to generate the interest.

There has been some evidence of pricing at pre 2007 levels which is crazy.

However, the last few days have been encouraging and I believe that May will be a very busy month which I think will continue through until the summer holidays. This is due to some excellent property being available at the correct level and the realisation from many people that they have to get on with things if they want to move by the end of the summer.

Ed Mackenzie Smith

Sellers who may be concerned about the strength of the market and are delaying decision making should think again.

Yes the market in North Hampshire is quite tough, but if realism is adopted in pricing sales are being negotiated. The good news is that once a sale has been agreed contracts are normally exchanged in a reasonable time. In other words getting commitment in the first place can be hard work but once secured, deals normally go through.

This indicates that whilst buyers recognise that the economy is tough going, values in our area are reasonably stable.

Good quality marketing and accurate valuation advice accelerates the front end decision making process.

Our friends at Which? have recently piled in with their observations on the Estate Agency industry with 'overvaluing' to secure instructions being a main criticism.

Clearly sellers want to see if they can get the best price possible. Our advice in this market is to quote as close to the real value as possible as overpricing just puts buyers off looking.

How much more?

We think 2 - 3% is about right.

Ed Mackenzie Smith

Some buyers who could not proceed at the beginning of the year are now in a position to buy, so that's good news.

Generally busier with the market split in two; those buyers who have access to funds and those that don't.

Banks making life tough for the new entrants to the market with a number of unadvertised hoops to jump through.

Good quality, well presented homes selling well.

An element of realism needs to enter the market. Our research shows that many asking prices are higher than this time last year. This merely kills off the interest.

Accurate pricing creates demand but not at the expense of agreeing a price that will be acceptable to most sellers.

Ed Mackenzie Smith

13th March....

Both Sellers and Buyers are exercising caution.

January saw a surge of property come to the market. February has tightened as Vendors are paying a 'wait & see' policy.

Buyers, given some extreme generalisations about values in the national press are, understandably are also hedging.

However, almost in all cases sales are secured when the correct price is applied to the property. As mentioned in this blog more times than I can remember the actual price achieved is more often than not very close to the asking price itself.

This confirms our advice.

As an example;

If a property is worth £350,000 then ask £350,000.

In most cases you are likely to achieve £350,000 or very close to this figure. Should a figure be quoted higher than the value then an uplift of no more than say 2 or 3% should be applied.

Inflating values in this market makes no sense at all and is the incorrect strategy to securing that move.

Ed Mackenzie Smith 

January has turned out to be a really busy month. This has yet to turn into 100% results as many people are not in a position to buy as they have yet to sell their own property. However, we have seen a greater number of properties come to the market which has resulted in greater choice for buyers compared to the same period last year.

This means that prices have to be accurate. In this market my staff are recommending that the best advice to secure a sale is to pitch the asking price as close to the real value as possible. Concerns over having to consider an even lower offer should be dismissed; all our market research demonstrates that where the asking price is accurate results in a price as close to 98/99% of the real value is secured.

This frees the owner up to move and make decisions on their own purchase.

Mackenzie Smith do not believe values will rise during the year and therefore good decision making on pricing are essential....

Activity levels will in our opinion continue to strengthen during the Spring months as more buyers enter the market. Correctly priced property will benefit from this.

Ed Mackenzie Smith

The further away we are from last month in terms of press coverage about the budget deficit the better.

At the end of the second week of this month we had already sold 82% of the homes we sold during October.

There is no question there are fewer people around now but it is November not April.

However, despite fewer numbers of people looking the quality, by which I mean ability to buy, the determination to get on with things etc is much better.

So if you are selling don't worry about the quantity of people looking around your home. You may only need one viewing to agree a sale.

People are already asking me about the market for next year. My answer is 'more of the same'.

Which means a 'consistently' inconsistent market.

Ed Mackenzie Smith

As so often before the markets operate the way they want to and not how the media portray things.

We have seen an increase in business levels starting just before and around the Government deficit budget. We also experienced this in September 2008 when the world was - according to many - 'coming to an end'. Although we reported at the time we had record numbers of people looking (admittedly not all buying) it nevertheless confirmed our view that a market cannot stand still for ever.

Either buyers or sellers had to make a move.

This was borne out by a very busy 2009 with values  and volumes of sales recovering.

There are many people out there who either want to buy or sell and in my opinion this will gather pace. There has to be realism from sellers but in our opinion buyers recognise real value and want to make decisions and get on with their lives.

Too much anaylsis from people not on the shop floor and in the real world.

Ed Mackenzie Smith

Resilience in the market

Buyers more cautious

The property market is, in my opinion, holding up well despite being on the receiving end of some pretty hostile media coverage.

This was particularly true during the middle and towards the end of the holiday period. As most of the reporting related to old regurgitated stories plus speculation about the impending doom that is to be unleashed upon us it might be worth reflecting on one thing.

It actually got busier as the August rolled on and September has really kicked on.

The Reason?

Buyers recognise value when they see it and Vendors recognise the importance of realistic pricing – something they were slow to take on board in 2008.

This has resulted in a market where buyers and sellers are approaching their negotiations with a view to doing business based on their own rather than the media led view and perception of what’s going on in UK plc.

Of rather more relevance is the lack of available finance for first time buyers and size of deposit required. It is this that will determine how quickly the volume of property sales recovers.

Ed Mackenzie Smith

Summer holidays do reduce the number of people looking however; those that are still viewing are serious.

I also believe that very negative and in my opinion unjustified press coverage has caused some people to hesitate and adopt a 'wait and see' policy. Very often press coverage has dealt with market comment that appeared months ago!

Our Fleet and Farnborough offices along with the new homes we are selling at Queensgate, Farnborough are particularly busy.

I anticipate a very busy positive market in September as many people who have delayed decision making will get on making plans to move by the year end.

As we saw in 2008 when the general view no one was doing anything we were in fact recording record numbers of buyers viewing property which in fact was a prelude to the very busy 2009 market.

So rather than worrying about what the papers say I prefer to make my own judgement based on what my customers are actually doing.....

Ed Mackenzie Smith

The amount of property in most areas has increased pressure on values to be accurate. This is a result of the decision to suspend Home Information Packs which has encouraged sellers into the market.

This coupled with a slight softening of demand has contributed for the need for realism on pricing.

Our advice remains that a realistic approach to pricing is the key.

For example it's no use applying a 10% increase to your true value as all that will do is deter perfectly good buyers from viewing in the first place. Concerns about having to consider low offers are unfounded as our experience is that we can achieve a price either at the asking price or very close to it if an accurate value is applied in the first place.

The supply of mortgage finance particulary for first time buyers is still a major factor affecting market conditions.

We believe that this will be ongoing issue for the foreseeable future.

Although the summer months trim the number of people looking; those buyers still active are serious.

Individual, well maintained properties are still securing a premium.

Ed Mackenzie Smith

June proved to the best sales month for Mackenzie Smith for over five years which of course we are very pleased.

A great deal of hard work has gone into this with the entire team of Mackenzie Smith contributing.

July has always proved to be a strong sales month and we see no reason why this should not be repeated this year.

There is more property available now but some evidence of serious overpricing which is holding back some buyers from stepping into the market. Accurate pricing is still a major factor in the succesful marketing process as we are not seeing any house price inflation at the moment.

Concerns over availability of funding and public sector cost cutting have tempered the market which in many ways is no bad thing given that we saw values rise by 10% or so during 2009.

Ed Mackenzie Smith

The latest news is that Home Information Packs are no longer required to begin marketing a home for sale.

There is still a requirement for an Energy Performance Certificate however; this is not needed to start with and can be included following the marketing launch.

Accurate pricing is still essential as buyers are well aware what sold for what (and when) and can access this information through various websites.

The general message?

Strong market still underpinned by a relative lack of supply.

Ed Mackenzie Smith

The market has really started to move following the Easter break.

The Bank of England has held rates (again) and the general view is that they are likley to remain at current levels for the remainder of the year which means that we are probably going to experience fairly stable conditions.

There is evidence of slightly more property available which is positive as the shortage experienced over the last 18 months has put off people moving exasipating the shortage.

More accuracy on asking prices is required in some cases and our advice to clients is to quote no more than 2 - 3% than the correct value to ensure buyers are not put off viewing....

 Ed Mackenzie Smith

Stamp Duty Budget Announcement

The budget statement provides for a stamp duty exemption on properties with a value of up to £250,000 from midnight 24th March for a period of 2 years. This will only apply to first time buyers.

This is to be welcomed as the previous adjustment on properties up to £175,000 was less relevant to the south east than other areas in the country.

Hopefully, this will encourage buyers considering entering the market for the first time to make decisions to press on.

Properties with a price tag of £1m + will see stamp duty rise from 4% to 5% resulting in a minimum of £10,000 hike in tax for purchasers of this type of property. We understand that there is no timescale on this other than the rise is from midnight 24th March.

On a general note the market remains busy but with more sensitivity on prices than this time last year.

New properties that are completed and well presented property are selling well.

Ed Mackenzie Smith

The North Hampshire market has really started to move with more buyers deciding that investing in property in Fleet, Farnborough, Ash Vale, Hartley Wintney and Hook areas is a better bet that renting.

Despite difficulties with banks lending money for home purchases there has been some improvement in the % required bringing more buyers into a position where they can buy.

The Fleet market has been consistent for about 15 months or so and a significant new development by Berkeley Homes called 'edenbrook' is scheduled for a May launch. If the idea of buying a brand new home appeals then we can provide a valuation on your current home to provide you with confidence to plan any proposed move.

Property for sale in all areas of North Hampshire are in demand and we expect this to continue over the coming months.

Ed Mackenzie Smith

The weather got in the way of a busy start but as I see it the market has kicked off in a similar manner to last year.

However, last year many buyers had taken the decision to find a buyer for their own home before looking meaning they were in a position to purchase as soon as they saw something that appealed.

This year there is evidence that some buyers are assuming they can sell immediatley so they are not organising the sale of their own property. My advice to these buyers is to take the decision and get things underway as - until they have a buyer - they are likely to miss out on property to buyers who are in a position to proceed.

As for forecasts for 2010? Much too early as there is a great deal of confusing data but one thing remains the same as last year - a shortage of property which has underpinned values and confidence during difficult times.

Values in 2009 improved by as much as 10% and this has injected confidence.

Developers have also re-entered the market particulary for 'ready to go sites' and this is also a good barometer for the market.

Ed Mackenzie Smith

The market has started to quieten with Christmas around the corner. As ever there is speculation about what the market might bring in the New Year.

The market has recovered from the low point of 2008 with values improving as much as 10% during 2009 driven by the lack of stock and cheaper money.

The market next year - in our opinion - is unlikley to see these gains as the affect of lack of mortgage funding sinks in alongside a slight improvement on the number of properties coming to the market. There are going to be increases in values but generated by seasonal factors which used to be the case in more normal times. This will be balanced out by reduced demand in quieter periods.

As always if a property is well maintained and situated in a good location it will sell - whatever the market.

May I take this opportunity of wishing all our clients - past and present - a very happy Chistmas and New Year.

Ed Mackenzie Smith

The market remains busy although fewer people making plans at this time of year. However, these buyers are serious and we are selling all types of property throughout our area.

Values have risen this year as a result of the shortage of property to buy and we expect this to continue into the New Year.

If you are considering a move call any of our offices for a free witout obligation valuation.

Ed Mackenzie Smith

October is traditionally a good month to sell and this month the market has continued from where September left off.

Plenty of viewing activity from purchasers throughout the area resulting in offers being received.

However, a word of caution. There is some evidence of either Agents or Vendors pushing values beyond the level Buyers are prepared to pay.

It is natural to try and secure the best price possible but this must be supported by accurate - evidence based valuation advice.

All in all the market is significantly better than a year ago and there is, no doubt plenty of more confidence in the market generally.

Ed Mackenzie Smith.

September is traditionally a month which sees activity building up as a result of buyers needing to make decisions with the aim of moving into their new home before the year end.

This period represents a good time for Vendors thinking about selling to achieve the same aim.

Early indications are that more property is becoming available and although we have seen a considerable improvement in the market there is still a need for vendors to get their pricing right to attract interest.

Ed Mackenzie Smith

The market continues to improve unerpinned by positive media comment.

The key is interest rates helping people stay put who might have had to sell and encouraging those with cash to reinvest in the property. Result - values, in our opinion, have improved by as much as 10% this year.

Continued shortage of property helping sellers but values still need to be accurate to ensure a successful sale. However, we are securing good prices sometimes in excess of our own opinion. This is often down to buyers taking a long term view.

If you are considering a sale September and October traditionally represent a good time to get moved before the year is out.

Ed Mackenzie Smith