maRkEToutlook
the agency is seeing a better flow of increased prices, despite a desire by owners
applicants registering and viewing, agreed to push the limits. Any rush to try and
sales are still low when measured against ‘force’ prices, up by agents trying to win
the number of viewings. “March and April business by overvaluing, or sellers simply
have been the busiest months since being too ambitious in their expectations,
September 2007 but the number of could stall the fragile improvements we are
properties coming on the market is low for seeing. I think in time, we will look back on
this time of year which is increasing the this part of 2009 as the point, where the fall
number of viewers per property.” So it in values started to bottom out and the
stands to reason then that agents are seeing road to better prices and activity began.”
multiple offers on the well-priced So the question remains, how long will
properties that do exist. the ‘bottoming out’ take and how many
“Well-priced properties are even going months – or years – is recovery likely to
above asking price” says Peter Rollings, take? Managing Director of Winkworth
“because it was the ‘right one’ (for the Franchising, Dominic Agace is upbeat.
buyer). In fact we’ve had 35 ‘best and final’ “We are seeing an improved market
March and April offers this year. Our ‘fall through’ rate has place; low interest rates and quantitative
shrunk dramatically.” Similarly, Robert easing appear to be feeding through and…
have been the Scott-Lee has reported significant activity buyers are buying again. However, macro
at Chancellors and comments, “With economic conditions such as deteriorating
busiest months since increased access to funds, good investment employment levels and ongoing bank write
returns and people not able to wait any downs cannot be ignored. The property
September 2007 longer to purchase, we are finding a market cannot operate in isolation for a
significant increase in the number of sustained period. Therefore, whilst we will
but the number of multiple offers and properties going for see an improvement in 2009, we will not
over the asking price.” see the start of a full recovery and property
properties coming Andrew Dewar, however, considers the price growth until these macro elements of
market has some way to go yet before we the economy improve. We anticipate a
on the market is low can expect to see sales of properties where sustained recovery leading to price growth,
asking prices are high. “Growth in values which will only start in 2010, although we
for this time of year.’ will inevitably come but it will be envisage transactional levels will improve
measured. The renewed activity we are 10-15 per cent this year.”
Andrew dewAr, CurChods estAte AgenCy seeing is fragile and will not yet cope with Indeed, Chief Economist at Nationwide,
‘window dressing’ remains to be seen”.
Anecdotal evidence from West London
Indeed Nationwide has recently
announced that the demand for secured
lending is expected to fall further and
Merryn Somerset Webb, Editor at Money
Week, appeared on prime time television
this week, to advise home-searchers that
the market hasn’t bottomed out. “I think
prices are going to fall further over the next
couple of years so if you do have a deposit
and want to buy but can afford to wait, you
probably should.” So unless FTBs are so
strapped for cash they’ve sold the TV,
they’re not likely to enter the market soon.
While activity levels in the housing
market are rising, house prices in April
were 17.7 per cent lower on an annual
basis and the house price to average
earnings ratio has declined by 27 per cent
to its lowest level since September 2002,
according to the Halifax, housing
economist, Martin Ellis points out, “The
house price to earnings ratio is a key
measure of housing affordability.” edwardes square w8
Andrew Dewar, Senior Partner of This Georgian house was marketed in early April at £3,500,000. It had 58 viewings in 10
Curchods Estate Agency, admits although days and sold just below the asking price, the buyer exchanging contracts in five days!
PROPERTYdrum JUNE 2009 33
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