WHAT TO EXPECT FROM THE PROPERTY MARKET IN 2012 BY MARK WELTON
Well firstly, I would like to wish all our clients, buyers and subscribers a very happy and prosperous New Year and hope that we can all benefit from the many positive opportunities which will inevitably come our way this year.
So what are the prospects for our property market during 2012? Well, if you follow the media, they will say “more of the same” as we had last year. My response to this sentiment is “yes please” and “thank you”. I am delighted to report, that despite all the doom and gloom and negative predictions, Mishon Welton enjoyed one of its best ever sales year in 2011 and helped more people to move home than ever before!
I am not pretending however, that the market is easy and that property is selling quickly at strong prices as this would be ridiculous. As we know, the challenges facing our economy are well documented and these difficulties are part of a “world problem” perhaps more so than ever before. However, results speak for themselves and the local property market has proved to be robust in the face of such adversity!
My feeling is that 2012 will show, despite all the predictions to the contrary, a fairly busy and stable market. Genuine enquiries for property in all price ranges in the last quarter of 2011 were up 30% on the corresponding time during the previous year and we are already receiving registrations from buyers anxious to conclude a property purchase before the Spring. This demand will keep prices stable and prevent any wholesale collapse in prices as has been predicted by some. Indeed, such stability will be underpinned by the paradox that is peculiar to the local property market. This is that when market conditions become tough, rather than sell their homes at a perceived loss, many sellers simply decide not to market their homes until conditions improve. The net result of this phenomenon is an actual “shortage” of available property to purchase. Those purchasers looking for a bargain will be disappointed and the “feeding frenzy” that someone predicted to me last year will certainly not happen!
None of this is to say that prices will increase or that sellers should seek un-realistic values for their homes. The market will remain “price sensitive” and only sensibly and realistically priced property will attract the buyers that are undoubtedly keen to purchase. This year, will be an excellent time to trade “up market” to a larger home as the gap between one price range and another will remain smaller than historically and buyers wishing to make an “upward” move should, in my opinion, do so with confidence in the context of a stable position in the property market at least.
In my view, the key to success in the property market this year is to choose your agent wisely. Look for experience and knowledge and above all take their advice when it comes down to pricing and marketing. Remember, a good agent will be an expert in their field, so have confidence that they will provide the correct advice in the context of the current market.
Here is to a prosperous year for us all and a more positive property market than many would have us believe!