News

UK housing transactions in May were down 4.5% on May of last year when there were 103,110 sales.
While the figures show what a long way the market has come from its darkest days – in May 2009, there were only 64,640 transactions – transactions are still a long way behind pre-recession figures.
In May 2007, HMRC reported 140,110 transactions. So the market is still 40% below pre-recession activity. I think that just about sums up where we are today. Lower end good quality homes in walk in condition are selling well, but if any of the three needs are not met, property stays on the market for a long time.
Location, presentation and price all need to be right to attract a buyer in the current climate. Location is something you can do nothing about, but ensuring the property is always shown at its best is a must. Price is a difficult one, if a buyer wants it they will pay, perhaps with a reduced offer, but they will pay. Reducing the price again and again rarely works.
That takes us back to presentation! Gone are the days that a buyer wants to “put their own stamp” on a property. That used to be short for, getting a property at a reduced price and doing it up. People are simply not interested now, they walk round endless properties until they find one that meets all their needs and in walk in sit down and get on with their lives. Oh and they expect a discount as well! (Hence reducing the price early on rarely works)
That’s really where the economy is at the moment, we all expect a discount on everything we buy and if we find the least thing wrong with it when we get home, it goes straight back.
The second problem we are trying to overcome is uncertainty and there is plenty of that at the moment. Greece and Europe are both claiming the other has compromised, but the reality is they have both kicked the ball into the long grass for it to reappear in a few months’ time. The truth is Greece is bust and the Germans don’t want to foot the bill, even although they have been the greatest beneficiaries of the Euro. The irony of it all is, Greece wrote off the German debt to Greece after the last war, but let’s not go there.
At home, when will someone stand up and say, no more referendum, or just have another now and then accept the result and get on with life. Uncertainty is the scourge of all markets and we have plenty.
The good news for all home owners is, low inflation and low interest rates are to be here for a very long time. We just need to believe it.
Bill Reid BEM BA NAEA DipPFS
Reid Estates
01738237337