So we find ourselves at a bit of a stand-off. Two sides facing each other waiting for the first one to blink. Buyers vs sellers, waiting for any changes in the market that can be taken advantage of. Or that’s certainly how it seems.
The property market is in an interesting place. Inflation and interest rates have had their influence and we are definitely in a slower moving market, but moving nonetheless. Over the past few months we have spoken about a return to a normal market, which we have seen, but now we have come to a crossroads.
The media has been as helpful as ever when it comes to stoking the flames of uncertainty. Stories of property price reductions constantly abound and national trends are displayed to us as gospel truths. There are areas of price reductions and there is a slow down in the sales process as people take longer making decisions and attaining financial support. What seems to be happening though is that buyers are waiting for a bigger drop and sellers are hoping to avoid one.
Prices are holding steady and sellers know the value of their home whereas buyers are constantly worried that the market will drop and they will be left out of pocket. We are left with a no mans land between the two which is still being crossed but tentatively.
Which way things will go is difficult to predict especially as we approach the winter market. However, with the next interest rate announcement due at the beginning of November we could see movements before the year is out. Should the base rate be held again then positivity should be nurtured in the market and more competitive mortgage rates should be more common. With this the chance of easier lending and more affordability should lead to more sales in the market.
Whatever happens, Poole Townsend are there to guide you through your local property market and are happy to talk you through any property questions you may have. Get in touch with the team.