The Changing Market
Posted on Thursday, November 20, 2014
Boom, boom, boom appeared to be the word of the day for every day at the start of the year! The property market was flying, houses were selling at their fastest rate for years and worries of another price bubble appeared to be coming to fruition. The reason for this sudden hike in prices was mainly down to the government pressurising banks to lend to first time buyers, thus the return of the 95% mortgage 12 months ago, which fuelled the price rises through the early part of 2014.
This also brought more sellers to the fore with the prices rising around them faster than they had seen for over 7 years. However, a correction of the market was on the horizon and as more sellers flooded the market place in some areas, most notably in Leicester around the inner city terraced streets, the deluge of buyers which had been around at the start of the year started to withdraw. The price increases and extra choice allowed people to be more fussy about their purchases and subsequently the price rises stalled through June, July and August.
The market had now stabilised and the re-correction of this artificial bubble was beginning to gather pace. Prices at the lower end of the market began to contract and this led to a few disappointed sellers in various areas of the city, again most notably the terraced suburbs. But is it all doom and gloom from now? Not by a long shot. The stabilisation of the market is a good thing for buyers and sellers alike. Consistent pricing creates a happy atmosphere for buyers, sellers and agents, everybody knows where they stand and although houses may not sell quite as quickly, the message is that if the house is priced correctly and the correct agent is marketing the property, then a sale is still just around the corner.
December traditionally is a quiet month for estate agents but 2013 bucked that trend with the new lending being dished out by the banks. I would expect a return to normal seasonal activity in the next 4 weeks but rest assured, buyers and sellers will be back in force from January 2nd as the market takes off for what should be a steady 2015 with much less volatility in the market than the last 12 months.