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