August is traditionally viewed as a quieter month in the Estate Agency business but that is definitely not the case this year. Within the first week Mackenzie Smith has already written 70% of new business based on a good month’s performance.
Clearly there is an improvement in sentiment not just confined to the property market as reports in from across the media indicate that retail,manufacturing and car sales have seen marked improvements in trading. According to one report, British retailers had their best month since 2006.
Although the recovery in the housing market may seem modest relative to previous market conditions, it will appear to be robust given how tough times have been. There is no doubt values have risen and buyers are seriously looking at purchasing rather than renting but I believe this new confidence stems from a belief that although values are likely to go up, it’s the belief that they won’t fall that is underpinning buyers confidence.
This is not to suggest that we will see ‘boom’ conditions but with no forecasted improvement in the supply of second hand property and with the ‘Help to Buy’ scheme extending to second hand property next year, my advice to any buyers sitting on the fence is – Don’t.
Ed Mackenzie Smith