Residential Market Update

As I think we all realise by now, the property market is experiencing very tough conditions. However, there are now some more positive signs appearing. Mundys has experienced a significant rise in new Applicants in 2009. This is mainly due to cash buyers quite rightly deciding they can now secure a purchase that makes sense despite the widely recognised opinion that prices will continue to fall.

In a previous article, I suggested it is dangerous to try to second guess the bottom of the market, as the bargains rapidly disappear as soon as there is even a whiff of stability. Buyers are now recognising prices have fallen significantly over the last 16 months, meaning the bottom of the market may be reached more quickly than in previous slumps.

We recognise it is difficult for sellers to think of moving now, but it is actually an excellent time, for instance, to move upmarket. Not just because you win out financially (ie, if you sell today for £125,000, instead of £150,000 in 2007, and buy for £250,000, rather than £300,000,you’re £25,000 better off), but crucially it is a superb time to buy a really special home in a prime area which would normally have a queue of people able to purchase in a good market.

Of course you need to be sure of your job and have a good deposit if you need a mortgage, but if these two things are in place, more mortgage finance is becoming available and with interest rates so low, some terrific deals can be found. It is still not easy to sell, but more buyers are out there and we have recently sold 10 properties within the first 4 weeks of marketing.

Please do feel free to contact any of our qualified Valuers or our Sales Manager, Vicki Wilkinson, for free professional advice.