TIMING IS EVERYTHING

Corum’s Managing Partner, John Kelly shares his view on the current market, the challenges and opportunities it presents.

The shock news revealed in last week’s Scottish media about the depression in volume sales and the actual fall in values comes as no surprise to any Estate Agent in the West Coast of Scotland or its clients; the clients in question being those who were active in the marketplace between September and December 2008!

Make no mistake, the recent market conditions are almost unprecedented in modern times and I have said as much in previous articles, but nevertheless, the facts now being reported, whilst accurate, reflect the trend of some six months past.

The market continues to trade well down in volume terms compared with previous historic highs, but the depression now sits below 50% year on year, as opposed to the figures now being reported.  I predict by August/September of this year, we will see year on year increases.  Many have speculated that the introduction of the Home Report has been influential in limiting the number of properties coming to the market  - which may be the case, however, I believe lack of liquidity and consumer confidence are perhaps more fundamental to this trend.

They say that ‘every cloud has a silver lining’, and, on that basis the current limited availability of quality homes, as previously stated, has lead to a more positive and fertile market for those selling properties that are in demand.  Notwithstanding the “Home Report’, an increasing number of clients are benefiting from price premiums above stated valuations in the said report, and, there is a considerable increase in closing dates - a situation which clearly demonstrates a beneficial imbalance between supply and demand.

Estate Agents will always be of the opinion that it is a good time to buy or sell: however, we thought we would provide you with some actual examples of what’s happening in the marketplace and let you be the best judge of that.

If you are unsure of the market, please consult with us and discuss your present circumstances, as we are keen to facilitate the moving process for you, if appropriate. And if nothing else you will benefit from the news that everyone else will be reading about in another six months time !

For further comment or information, contact John at Corum Shawlands 0141 636 7588