Market Update November 2007

Created: 13/11/2007

What is happening in the local property market?
 
A week rarely goes by without the latest headlines commenting on the state of or the outlook for the property market.  These seem to vary from complete gloom and doom on one hand to the news recently that prices are set to rise in London and the South East by 10% in the next 12 months.
 
How can any homeowner or potential buyer decide what to do if they are thinking of buying or selling.
 
The most important point to remember is that the property market is very localised and there are also local variations between different price bands.
 
Secondly, a headline saying that prices are due to rise or fall does not mean that there will be more or less transactions.  Generally the number of house sales completed on a 12 month rolling period is fairly stable.
 
Long-term property is a proven and stable asset. The value of a property never disappears completely, as can happen with stocks and shares.
 
In most cases it is the comparative price that matters.  If you are selling in a tougher market and need to be more flexible on selling price then you should also be able to drive a harder bargain with your onward purchase.
 
Keep your priorities in mind, are you moving to a better or more suitable home or are you trying to make money.  For most people it is the home that matters.
 
Ian Perry of Perry Bishop and Chambers commented today on the state of the market across the Cotswolds: “Fewer buyers have registered in recent weeks, but those who are looking are genuinely motivated. As ever we are confident that any property priced correctly will sell within a reasonable time frame.  We expect prices locally to flatline over the winter but interest rates are now set to fall in the coming months and we are looking forward to a steady market in the Spring”.

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