The state of the market!!!

For some time we have seen a buyer’s market with vendors offering discounts off the original market appraisal given by Estate Agents.

Things appear to be turning with news of a 5th consecutive month of house price growth.

While discounts of 15-20% BMV (below market value) are still obtainable in some quarters, this market, to some extent, is cornered by Landlords who have been able to weather the storm and generate funding in this tough economic climate.

It’s great news for Letting agents with further stock being made available into an already healthy market place. There are a number of landlords who are in such a healthy cash flow position that they are increasing their portfolios on a monthly basis.

There seems to be more letting agents per square mile in South Wales now than there ever has been. To be honest there is enough of a market to sustain us all and with an anticipated growth over the foreseeable future, things in the industry seem rosy for now.

How long before the bubble loses some air again? I’m not sure as the mirage of a healthy market is once again due to the lower end of the market being propped up by landlords. If the bank base rate changes drastically would we see another slump or would the first time buyers step into the breach?

Questions, Questions, all I can say with confidence is that we will see growth in this industry for the next 12 months at least. Furthermore I predict we will see the largest growth in lettings during the next 12 months than over recent years. Due to the market conditions I also anticipate the demand for two bedroom properties to soar, as the first time buyers are once again pushed back down the pecking order. The task faced by first time buyers, initially raising adequate deposits and adequate mortgage finance to fund their first step on the property ladder today seems that one small step for man and one giant leap for future financial stability to far.

With this in mind landlords are quietly purchasing these two bedrooms and finding tenants really is not the issue, we currently have a ridiculous list of tenants looking for two bedroom houses and flats in all areas. The great news is that when the market does eventually start to move again, it is normally the lower end of the market that sees the benefits of capital appreciation first.

Great times to be involved in property!!!!