Confidence in the Housing Market is Up
One of the effects of the credit crunch was that many people who were ready to make a move on the property market decided not to offer their property for sale. This reluctance to sell even lead some home owners to try their luck on the rental market , leading to the invention of the term “accidental landlords”. However, the tide is turning and many reluctant sellers are now listing their property. Find a Property reported a 23 per cent rise n the number of properties for sale over the past year – an increase of 120,000.
The rise of properties coming to the market has also been bolstered by the recent abolition of Home Information Packs. With home owners no longer having to hand over cash just to list their property for sale, many more sellers are returning to the market.
The shortage of properties for sale in 2009 contributed to an imbalance between supply and demand and was a key factor driving up house prices last year. Of course, with more properties coming to the market, prices are now beginning to level off, thereby correcting the imbalance. The low level of interest rates, however, continues to support housing demand.
Meanwhile, The Council of Mortgage Lenders (CML) reported that Gross lending, which includes lending to people remortgaging as well as house buyers, rose by 15% in June to £13.1bn. These figures are 7% higher than a year ago and also the biggest monthly figure so far this year. Despite the good news, the CML attributes the pick-up in mortgage lending to a seasonal high (as this time of year is generally a busier period of house sales), but also points to the demise of the Home Information Pack as a factor.
In the view of many property experts house prices will be broadly unchanged over 2010 as a whole.
What does that mean those looking to move?
Home sellers will need to keep in mind that there is more competition and therefore must keep the price of their home more competitive. You need to make sure that you instruct an estate agent who is honest about the price that your property will realistically achieve in the current market. The best agents will give you "comparables", properties that are similar to yours that have either recently sold or are currently on the market. Avoid estate agents who give you an inflated price that is what they think you want to hear and no proof to back up their figure.
If you are also buying a home, as well as selling, you may not achieve the lofty prices you might have in 2009, however, you will also be paying slightly less for the home you are buying, making your new home a much better deal.
Want a realistic valuation of your property from an award winning agent? Book your free valuation now and call Northfields on 0208 840 6666 or click here to request a valuation online.