Having watched the local property market for longer now than I care to remember, right now its about the weirdest I have ever seen it. Looking at small two bed terraces or two bed flats, new properties are coming on at the same prices they have been for many months, anything between 160k and 190k depending on location.

However there are also a lot of properties floating about that have been on the market for several months, where the asking price is down to 140k (and not just the ones in bad areas as before). This jells with what we’ve all heard about the number of mortgage approvals being heavily down.

Three things therefore seem likely

  1. Some people are still paying the asking price (presumably those with money coming out of their ears).
  2. Some are getting (comparatively) good deals.
  3. Some sellers are hanging onto their properties hoping this is a blip, while some first time buyers are holding off buying hoping (or worrying) that prices will fall still further (up to 30% is now being predicted*).

So…

  • In the sellers market of the last few years people have got used to not haggling. ALWAYS haggle unless there is heavy interest in your dream house. While the agent may well act shirty, offering 10% below asking price at first is not unreasonable.
  • Don’t forget to check historical sold prices for the area (and even the road) you’re looking at buying in. Remember however that this won’t include sales within the last 2-3 months.
  • Remember location. If things pick up again you’ll pat yourself on getting a bargain in the best area you could.

* Note that 0% and even a raise in prices is also being predicted. That’s the great thing about predictions on the property market, no one expects you to be right ;)

Rowan :: Feb.05.2008 :: Property :: No Comments »