NOVA NEWS EDITORIAL AUGUST 2022
AUTUMNAL AIR
AUTUMNAL AIR
There is no doubt that the residential property market has enjoyed a significant boom time over the past couple of years but the question has always been ‘Is it sustainable?’. The answer is almost certainly not.
The first two weeks of August are generally a quieter time for agents with families away on holiday there is less inclination for people to view homes for sale. This seems to be the case again when talking to local agents. There is certainly less property coming to the market and buyer enquiries are down with only a relatively small number of properties now getting a high volume of viewings.
The Bank of England has, at the time of writing, just increased interest rates by 0.5%, unheard of in a generation. There is also a stark warning that we will be falling into recession towards the end of the year. This is hardly surprising considering the financial pressures which are mounting on the family purse. Mortgages, energy, food, etc., there is nothing that isn’t increasing in price.
With the energy cap increasing again in October family finances will continue to be stretched and household budgets will be challenged. It is not possible to predict how this will affect the housing market but there will inevitably be consequences. Will it mean that some owners move out and into rented accommodation? Will there be a need to downsize? Estate agents will be tested to find the right price to market a property in an unpredictable and far less active market. From a seller’s point of view that ‘kerb appeal’ will become more critical in the presentation of your home for sale. Over the past month, I have been to a considerable number of properties and it is very noticeable how some vendors are very mindful of the presentation of their homes and others have not given the matter a great deal of consideration.
A home in an enviable location will still generally command interest in the market place but if you are in an area of similar house types then you need to be able to stand out from the crowd because there is a fair chance that there will be a lot of property to choose from. It is already apparent that in some locations properties are starting to become less easy to sell than even three to four months ago. Then there is the Christmas factor, it may be that kicks in very early this year.
The first two weeks of August are generally a quieter time for agents with families away on holiday there is less inclination for people to view homes for sale. This seems to be the case again when talking to local agents. There is certainly less property coming to the market and buyer enquiries are down with only a relatively small number of properties now getting a high volume of viewings.
The Bank of England has, at the time of writing, just increased interest rates by 0.5%, unheard of in a generation. There is also a stark warning that we will be falling into recession towards the end of the year. This is hardly surprising considering the financial pressures which are mounting on the family purse. Mortgages, energy, food, etc., there is nothing that isn’t increasing in price.
With the energy cap increasing again in October family finances will continue to be stretched and household budgets will be challenged. It is not possible to predict how this will affect the housing market but there will inevitably be consequences. Will it mean that some owners move out and into rented accommodation? Will there be a need to downsize? Estate agents will be tested to find the right price to market a property in an unpredictable and far less active market. From a seller’s point of view that ‘kerb appeal’ will become more critical in the presentation of your home for sale. Over the past month, I have been to a considerable number of properties and it is very noticeable how some vendors are very mindful of the presentation of their homes and others have not given the matter a great deal of consideration.
A home in an enviable location will still generally command interest in the market place but if you are in an area of similar house types then you need to be able to stand out from the crowd because there is a fair chance that there will be a lot of property to choose from. It is already apparent that in some locations properties are starting to become less easy to sell than even three to four months ago. Then there is the Christmas factor, it may be that kicks in very early this year.