WEBSITE MARKET REPORT
FEBRUARY 2010

A RIDDLE WRAPPED IN A MYSTERY INSIDE AN ENIGMA

Dudley and Katherine Singleton of Singleton & Daughter, Pangbourne, look into the strength of the property market this Spring and find that, despite the conflicting signs, there is reason to be very optimistic. The pundits are now stating that the recession is at an end and the property market has made a cautious recovery.

Certainly those green shoots of recovery that have been so bandied about in the press have started to show themselves. Continuously, since the beginning of the year, Dudley Singleton & Daughter have been busy - sales being made and completed in all price ranges.

Although market confidence is not fully back, certainly there is a great deal more than in 2009. There still seems to be pressure on the market from prospective purchasers leaving rented accommodation which has created a law of supply of demand; there are too few properties on the market with many more prospective purchasers entering the market with cash ability to purchase. Mortgages have become more available in all price ranges. Everything points to a busy Spring market as long as there is a reasonable supply of properties being placed on the market for sale.

How long this active market is fuelled by purchasers leaving rented accommodation is very much open to speculation and conjecture. 2010 is election year and, historically, in the lead up both vendors and purchasers tend to sit on the fence. This may, of course, slow the in the market down until after the hiatus of electioneering is finished.

The media and property 'experts' still seem to think that the market could take years to pick up again which, to some extent, has already been proven wrong. This underlines the fact that nobody can really be an expert forecaster in property. We can expertly deal with the market we are in and skilfully help buyers and sellers to make the best of the prevailing conditions, but to try and out-guess the property market is an entirely different proposition.

So if we are not going to be foolish enough to try to foretell the future, at least we can try to understand the present. What the gurus could not factor in was the behaviour of the British house buyer and seller. Neither group is silly. Homeowners understand that the market has bottomed out and now the only way is up. So the longer they wait, the more they may get for their property. Buyers, on the other hand, are keen to buy now as they anticipate that this is the perfect time to purchase. Indeed, latest figures show that residential property is now at its most affordable for thirteen years, but it must be remembered if you are selling and buying the financial scales should balance, it is still an especially good time to trade up.

The recent property activity is a riddle, and the mystery of where things will go next does lie within the enigma that is the market. But one thing we do know: those astute buyers and sellers do understand a thing or two about supply and demand. Reluctant sellers means a dearth of property coming onto the market and that, in turn, is stimulating a level of activity that is now causing competition between buyers. Hence the recent surge in property activity. In some areas this means multiple offers and even rising prices.

So, what a great position to be in. Don't sell and you will make money. Buy now and you will make money. It's win-win and that is a concept that should be no riddle, mystery or enigma to anyone. I believe now is a great time to buy and sell; who knows what will happen to the market after the election.

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