Alasdair Morrison, independent estate agent in Newark and Southwell looks at the local property market in relation to the current economic situation in the UK.
He says: “As we approach the end of the year, we find ourselves in politically turbulent times, with the Brexit debate continuing to undermine economic confidence, but only slightly. Certainly there are some scary concepts being tabled, not least the Governor of the Bank of England suggesting that a no-deal Brexit could trigger property price falls of up to 35%.
“Far be it for us to argue with the Governor, but this rather dramatic suggestion relies on a) a no Brexit deal and, b) drastic falls in transaction volumes which are already relatively low as there are very few speculative sellers in the market.
“Most current sellers have a genuine reason to move – marriage jobs, divorce, children, debt, etc, and these situations are unlikely to be especially affected by any Brexit outcome. In fact, anyone likely to be affected by the long-running Brexit confusion already has been.”
Alasdair continues:
“There are still far more prospective buyers than sellers (especially as it is generally cheaper to buy than to rent) and this is unlikely to change unless the money supply were to dry up.
“This is very unlikely as banks are becoming increasingly competitive to secure any potential fall in mortgage business. Remember, prices only fall when there is an over supply of stock in relation to demand.
“Sales to first time buyers, especially, continue to rise and now represent over 23% of the property market in the UK.
“In terms of UK house prices, whilst Prime Central London may have already dipped by nearly 15% in the past four years, these properties are being sold by extremely wealthy individuals for whom a dramatic price reduction that enables a quick sale is hardly painful, but gets the job done!
“For everyone else, such us ourselves in Newark and Southwell it’s business as usual. Although potential wobbles in market confidence suggest that sellers would be well advised to listen to the advice of a trusted local estate agent – not one who seeks to flatter with an overly-optimistic asking price.
“Certainly this is the wrong market to be sitting on a property that goes stale on the market due to an incorrect pricing decision, while canny buyers look elsewhere for their next purchase.
“We always find that the properties that are keenly priced will sell first, and achieve the best price too. It is also essential to ensure that your estate agent is particularly strong in their buyer qualification and sales progression activities; glitches down the chain in a nervous market must be avoided at all costs.
Alasdair finishes:
“Are we in confusing times? Maybe. But Christmas is round the corner and we look forward to helping our clients take advantage of the traditional spike in buyer activity over the festive season. Happy Christmas to buyer and seller alike!”
