Market comment

Following a dramatic turn in the market which took place, across the country, in April/May 2009, summer and autumn saw growth in the overall volume of sales and, as shortages of stock persisted, some recovery in prices. Now, with the obvious bargains gone and supply still short, price-sensitivity is coming to the fore. Looking ahead, it is the mortgage market which may determine the shape of 2010.

Sentiment about the current market varies amongst our directors, but all agree that the picture is hugely better than in the immediate post-Lehman crash days of little more than a year ago. And no wonder. From that low base, the number of sales has more than doubled, as has the number of buyers registering with us. Prices in our sector have recovered, stabilising at a level perhaps 10% to 15% below the peak of 2007. In view of this and lower interest rates, our excess of demand over supply is not surprising.

The number of properties coming onto the market is also up, but only by around 10% – not nearly enough to get things back to full strength. In part, this is because many owners still have an ultra-low rate, pre-credit-crunch mortgage and assume (often incorrectly) that they would lose this advantage, should they move

For the property market then, it is good news that with every month that passes, the fixed term of thousands of these ultra-low rate mortgage agreements, expires. Better still, there are now signs of real competition amongst lenders, driving down the cost of mortgages, again encouraging new entrants to the market.

In the meantime, those who want to sell now and are willing to set a price close to realistic expectations are often pleasantly surprised. In Cornwall, for example, our Truro office has enjoyed its best fourth quarter for over two years, in terms of the volume of sales, their prices and, significantly, the closeness of asking and selling prices. In East Anglia, the Norfolk house pictured here attracted no fewer than 23 viewings and six good offers, in just one week of marketing. Significantly though, the spread of those offers was remarkably small. The same is true across the country: despite the shortage of stock, from Felixstowe to Falmouth and Dover to Darlington, people are either unwilling or unable to pay over the odds, or both.

Consequently, there is a huge number of frustrated people out there, eager to move, with the funds to do so, but unable to find what they want. They have an unprecedented amount of market information, have seen everything within their target area and price range and will not hesitate when they see the right property at a fair price. So whilst all involved nervously hedge their advice and bets as to what 2010 will bring, we can state one thing with absolute confidence: if you do want to sell, the buyers are there – and they’re serious.

Saxlingham Nethergate, Norfolk. With a guide price of £650,000, this unmodernised house in now under offer, having attracted in just one week no fewer than 23 viewings and six offers, all remarkably close and realistic.