Musings of a London Property Buyers Agent

Miles Shipside, the Commerical Director of property portal Rightmove has called the bottom of the market as last winter on the basis that property prices dropped by 2% a month in the second half of last year, whereas house prices have been increasing by 1% a month this Spring and Summer.  But that is precisely why the argument over seasonally adjusted vs non-seasonally adjusted house price indices runs and runs.  The Spring and early Summer markets are always busy – or at least busier in any kind of reasonable market – 2008 being the exception to the rule.

That is why all the main house price indices issue seasonally adjusted and sometimes non-seasonally adjusted house prices: to take into account the traditional Spring/Summer surge.  I will be incredulous if house prices don’t dip again slightly this Winter.  Canny sellers will put prices up just now because there has been confidence in the market for at least 2 months – driven predominantly by lots of buyers chasing a small number of properties.  The shortage in stock boosts the chances of several people wanting the same property, which is the best way to achieve a good price these days.

According to Rightmove, they are seeing an average of 21,364 new sellers a week at the moment, only 61% of the usual number.  According to the Land Registry the first few months of this year saw an average of 31,000 property transactions a month.  This is a huge drop from 120,000 in 2007 and the historic norm of around 86,000 a month and we know from anecdotal evidence that there are alot of keen buyers out there.

Shipside might well be right, as we have already said a number of times this year – there were some good bargains this spring in our view.  But at the end of the day, there are always bargains around, even in 2007 when prices were at their peak.  It’s just a matter of tracking them down!  If you don’t have the time, contacts or know-how – consider using effective property buyers agents – like us for example!

Technorati Tags: London House Prices, London Property Buyers Agents, property buyers agents, property search agents, relocation agents

Tags: London House Prices, London Property Buyers Agents, property buyers agents, property search agents, relocation agents

Musing of a London Property Finder

The Bank of England reduced the official base rate by a further 50 points today taking interest rates to a record low of 0.5%.  Citing projections that Consumer Price Index or CPI Inflation will fall below 2% in the second half of the year, the Monetary Policy Committee also announced a £75 billion programme of asset purchases as an additional measure to ease deflationary pressure. 

The news has been met with joy by borrowers but has been widely criticised by many concerned that the rate cut undermines savers income and exchange rates.  For those in stable employment, there has never been a better time to be a debtor, particularly for mortgagees on variable rate mortgages with no minimum interest rate. Many borrowers are saving in excess of £2,500 a year for each £100,000 of outstanding motgage borrowing.

Fortunately for property search agents like us, interest rate cuts are good news.  Now is a great time to buy as long as you get a reasonable discount off an accurate valuation.  So you see, every cloud has a silver lining.  Instead of investing in boring old gilts – maybe now is the time to think property instead?

London Property Search Agents, Brighton Property Search Agents, offer a nationwide Property Search on application

Technorati Tags: Bank of England Base Rate, Brighton Property Search Agents, Intrest Rates, London Property Search Agents, Monetary Policy Committee, property search agents

Tags: Bank of England Base Rate, Brighton Property Search Agents, Intrest Rates, London Property Search Agents, Monetary Policy Committee, property search agents