The Market Exceeds all Expectations

August 2009

Sales levels have surged ahead and this has now been sustained over a 5 month period.  The sales levels achieved have defied all expectations and predictions.  Many purchasers are deciding to move out of rented accommodation they might have taken over the last year or two and have clearly decided that now is the time to buy.  They have watched prices decline and can afford to take the view that their spending power in the property market is now greater than it was when they decided to move into rental accommodation.  This has provided a significant boost to the market.

Clearly a similar upturn has been witnessed in other parts of the country and this also has helped to stimulate demand.  There still seem to be many prospective purchasers relocating to the area due to employment opportunities and in this respect the area is clearly more fortunate than some areas of the country where recession has been more noticeable.

At John Goodwin sales levels are now 60% higher over the last 5 months when compared with the same period last year.  This marks a return to the levels of sales enjoyed before the downturn which commenced 2 years ago.

Demand for rental accommodation continues to be strong and we are currently agreeing an average of 40 lettings per month which is still significantly higher than anything previously achieved.

The commercial market remains more cautious, but lettings of retail premises and light industrial units are still continuing and there are high levels of demand for investment properties.

With sales of residential properties increasing at a time when the level of new instructions seems to be lower than average the result has been significant shortages of suitable properties to purchase and this is now helping to maintain price levels.  There is an expectation that the autumn will be a strong period for selling property and it is to be hoped that many prospective vendors who have been considering marketing their property will now be tempted into entering the market.

John Goodwin FRICS