Is The Market On The Turn?

May 2009

There have been many reports and comments in recent months suggesting that the property market might be improving and that green shoots of recovery have been in evidence.  These opinions have been expressed on a regular basis recently, but the market facts have not always supported the view.  At John Goodwin, however, we can now report significant signs of an upturn which have become evident during the last eight weeks.

In April and May we agreed twice as many sales as in the same months of last year.  As a result these have been our best months for residential sales for over two years.  There has also seemed to be a greater urgency in the market and transactions which have been negotiated have in certain instances been concluded in less than three weeks.  There have also been a number of instances where sales have been finalised after competitive bidding.  Our last auction sale was also very successful and each of the lots received a large amount of interest and an exceptional number of viewers.

There seem to be a number of factors which have contributed toward this change.  Properties are now coming onto the market at more realistic prices which reflect the changes which have taken place in the market over the last two years.  Many prospective purchasers who have been renting are now deciding to purchase and mortgage finance is gradually beginning to flow again.

The level of new instructions coming onto the market is very low for the time of year and this is beginning to create shortages in certain price categories.

There also appear to be signs of renewed confidence in the commercial market and we have received many more enquiries in respect of the sale and letting of industrial premises. 

The overall effect is that vendors and landlords now have a much improved chance of selling or letting their property, whether it be residential or commercial.  It does remain to be seen, however, whether or not this improvement can be sustained.

John Goodwin FRICS