| What Will 2010 Hold for the Property Market? |
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A New Year is always a good time to reflect on the past year and more so particularly in the current financial climate. We ask ourselves was the market in 2009 so bad? Are prices on the rise? What will 2010 hold for the market?
Looking back at 2009, apart from a rocky first quarter, our estate agency continued to sell and list properties in similar numbers to previous more stable years. Surprisingly so, given the lack of mortgage lending to would be borrowers. However, this did appear to improve towards the end of 2009 with lenders introducing more rates of interest and higher loan to values. Redundancies and a high rate of unemployment has also played havoc with the housing market, lack of job security meaning more people being less likely to move or commit to a higher mortgage. Although house prices did take a hit, with many vendors accepting lower offers than initially anticipated, overall the market has kept moving, with both vendors and purchasers fully understanding the implications of selling and buying in a depressed market. WHAT CAN WE EXPECT THIS YEAR? If a survey conducted with consumers by the Building Societies Association is to be believed then property prices will increase by 3% in 2010 and the Royal Institution of Chartered Surveyors expects more property instructions in 2010 and more completions as a result. However, this could be marred slightly by the fact that the government has brought down the level of Stamp Duty for purchasers from 1% at a threshold of £175,000 to the original level of £125,000, which of course will hit the all important first time buyers in the pocket! The National Association of Estate Agents are predicting that in some areas property prices may drop slightly in the first half of the year and then recover to remain stable. Whatever the outcome may be, we are predicting another buoyant year, and welcome both old and new clients alike. Hayley Wilson Estate Agency Manager |