The property market continues to be confused when it comes to pricing and is very much a two tier market.  We are witnessing more and more would be sellers in the upper end insisting on their home being marketed ‘privately’ to gauge opinion.  However the ‘best of breed’ continue to sell quickly and as more would be buyers decide to move into rented accommodation, competition will only increase over the next year and we will start to see prices for these rare gems rise.

The middle to lower end of the market is very sporadic with certain properties selling quickly while others languish around for months for no obvious reason. 

We feel now is an excellent time to purchase, the pending school holidays does remove certain buyers from the market for the next couple of months and viewing levels on properties will drop making some keen to sell vendors anxious and maybe willing to accept less!

The number of buyers in the market has certainly reduced somewhat from earlier in the year, stock levels continue to remain low and as such prices being achieved on sales continue to remain around the 5% mark off asking prices. According to a report by Rightmove.co.uk, the average asking price for properties increased by 1.6% last month so we have still not witnessing the much hyped ‘double dip’. At the start of 2011 we predicted that prices in Buckinghamshire and south Northamptonshire would drop by no more than 2% over the next twelve months and as the year creeps on we feel more and more confident that this prediction will be about right.

Whilst one has seen ‘price reduction’ e-mails relatively frequently in the last month, it is worth bearing in the mind that those properties were optimistically priced from the start, their real value has not changed.  As lending is starting to slowly ease  we are witnessing more buyers coming into the market place and whilst stock levels are improving, there continues to be a real lack of choice particularly for properties above £900,000.  Our view is further reinforced through the London market which continues to perform well and this historically has a knock on affect to our region, we are speaking with more potential clients currently based in London than at any time over the last two years.  One needs to remain cautious however there appears to be some optimism creeping back that prices are not going to drop by the headline figures that some national newspapers reported at the beginning of the year.

BUCKINGHAMSHIRE PROPERTY MARKET OVERVIEW 2011

NORTHAMPTONSHIRE PROPERTY MARKET OVERVIEW 2011

With the worst of the winter weather now behind us, the property stock levels  traditionally increase noticeably over the coming weeks, however, as in 2010, it looks likely that the dearth of stock will continue in Buckinghamshire, Northamptonshire and East Oxfordshire.  Estate agents are conducting good levels of market appraisals for would-be sellers however there seems to be a lack of commitment from owners to place their property on the open market.  As a result we are seeing more properties being advertised ‘privately’ where only the buyers in the best purchasing position are being informed of these ‘off market’ homes.

The London market is certainly performing well with a high number of potential buyers for each home on the market ensuring that strong prices are being achieved, particularly on houses.  This strong showing in the London property market will have a knock on effect to the surrounding counties in the coming months which is a good indicator for buyers in the home counties to purchase now if they want to avoid stronger competition for houses later in the year.

BUCKINGHAMSHIRE PROPERTY MARKET OVERVIEW 2011

NORTHAMPTONSHIRE PROPERTY MARKET OVERVIEW 2011

We reported last month that 2011 had started with a surge of interest from buyers and this theme has continued into February & March.  The market remains confused with stock levels continuing to be tight and a good percentage of the houses available being priced optimistically.  The good quality homes priced correctly sell well and quickly, often not hitting the ‘open market’.   We continue to see ‘privately available’ properties that are snapped up prior to the owner engaging an estate agent as the dearth of stock of the ‘best in breed’ continues.  The balance shifted ever so slightly in favour of the buyer during the last quarter of 2010 however with the threat of the increase in interest rates looming nearer, purchasers are keen to secure the low rates while they can and the stock shortage is starting to swing the pendulum back towards the vendor.

BUCKINGHAMSHIRE PROPERTY MARKET OVERVIEW 2011

NORTHAMPTONSHIRE PROPERTY MARKET OVERVIEW 2011

With the onset of snow in December, the property market in Buckinghamshire, Oxfordshire and Northamptonshire ground to a premature halt and that has clearly caused some pent up urgency in buyers.  The first weekend of property viewings in January, for estate agents in our region, has been unusually busy, some agents claiming to having had back-to-back viewings on their portfolio throughout the weekend.

Whilst the press continue to paint a picture of doom and gloom and of falling property prices on a national level, one needs to remain realistic about what is happening in their region.  We do expect prices to fall over the next twelve months but not substantially enough to concern those who are purchasing on a long term basis.  Without a doubt the lower end of the market continues to struggle as first time buyers find it almost impossible to get a foot onto the property ladder due to the large deposits required.  This traditionally has a knock on effect at the middle to higher end of the market however this is not proving to be the case at present as many buyers in the middle to top bracket are still in rented accommodation waiting to pounce on THE house  when it becomes available.  We are witnessing more properties coming to market now than in November and December however the quality houses continue to sell well and quickly, particularly in the £800,000 – £1.5 million bracket which is maintaining prices.

BUCKINGHAMSHIRE PROPERTY MARKET OVERVIEW 2011

NORTHAMPTONSHIRE PROPERTY MARKET OVERVIEW 2011

Is the property lending market thawing despite this cold weather?  It certainly seems so if the latest mortgage approval figures are anything to go by.  The number of mortgage approvals rose in November to 48,846 compared to 47,185 in October showing the first increase in month on month approvals since April.  There certainly appears to be a good amount of pent up demand, as mortgages for residential property become more readily available, people are snapping up the offers and looking to buy as soon as possible.  We are certainly not out of the woods yet as lenders are continuing to be cautious partly due to being sensitive about property prices and no doubt thinking about the £300bn loan from the government.  This caution is backed up by the average LTV being 57.7% in November 2010 however this is well up on the 53% at the same time last year which is a positive sign.

Within our region of Oxfordshire, Northamptonshire and Buckinghamshire, stock levels continue to be dire as would be sellers are remaining cautious about going on the ‘open market’, as a result we are now seeing more ‘privately available’ properties than at any other time of 2010.  The properties which are best in their class are still selling well and often off market while the average properties continue to need to go to market at realistic prices to achieve any hope of selling.  We remain optimistic about 2011 and feel that Q1 will offer good opportunities to purchase those quality homes.

However we are still seeing good quality stock selling well with one property recently marketed ’privately’ for circa £1.4 million  had three offers and secured a figure just off the asking price.  Our advice to clients is to be in a ‘ready’ position to purchase over the coming weeks/ months, stock levels show no real sign of improving and if a motivated seller comes to market, there are certainly good purchases to be made whether through the quality of the house or the price paid for a property.

The month of September witnessed continued evidence of the market hardening through the volume of price reductions we have witnessed.  However the ‘best in breed’ continue to sell well and quickly, which suggests that there are still plenty of buyers waiting to purchase the quality homes.  As such, it appears we are heading into a two tiered market, the mainstream properties are without a doubt no longer able to command the prices seen acheived earlier in the year and are now being reduced on the whole by between 6%-10%, whilst we fully expect comptetion for the best homes to continue to achieve strong prices for the foreseeable future.