Following 2 years of rising property prices locally, my opinion is that we have reached a peak in values, at least for the time being. By my estimation, prices have increased by approximately 20% from 2013 – 2015 which is pretty staggering when you think about it because wage growth isn’t at this kind of proportion and the national economy certainly isn’t growing at that rate.
If prices were to continue increasing by 10% a year into 2015 then property values will have increased by a third in just 3 years! I’m not an economist but in my experience of the housing market, which is significant, I can’t conceive that this rapid growth can be sustained which is why I think we will see a period of equilibrium going into this year.
Market conditions are still good for Ash Vale property, we are dealing with decent buyers who are motivated but they don’t want to get caught out paying over the odds so there is definitely an air of caution in the buyer’s mentality at the moment rather than the competitive frenzy we experienced in spring / summer last year.
We will really be able to gauge things properly when we reach the spring market but there are a couple of other factors to consider which may affect the market this year. Firstly, there is the forthcoming general election which I think will be in people’s minds when they are thinking about borrowing etc. combined with that there is the uncertainty over the UK’s involvement with Europe and what impact that may have on our economy.
It’s always hard to tell what the market is going to do in the first few weeks of the year but in a nutshell, the early signs are good. Activity levels are high and there is a good buzz about the place so if we continue in this vain then it should shape up to be a reasonable year.
Crawford Moxley, Branch Manager Ash Vale
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