Thursday 10 September 2015

The Autumn Market makes a welcome return

For the past 4 years we have seen a new pattern emerging in the residential sales market.

Whereas, traditionally, we used to rely on the Spring and Autumn markets being our busy selling periods, more recently January and February have become crucial to our trade. As lifestyles, demands on time and the means of contact change, the desire for immediacy gets ever stronger.  Decisions are made over Christmas family gatherings and once this desire to move becomes the focus, the house needs to be found - or sold - now! And, without a sense of urgency, desire loses its value.

Rather unnervingly, the Autumn market has been poor over the past few years.  However the mood has changed this year: August was strong and September is proving even better. The Autumn market is back!

Various events were contributing to the recent yearly cycles of strong first half, weak second half – last year it was Mark Carney’s early indication of interest rates rising.  They didn’t!  But it affected people’s thinking, nonetheless.

This Autumn, despite a very erratic stock market which could have unnerved sales, activity is strong.  We saw an over-confidence in pricing following the General Election in the Spring, but many guide prices of the time have been trimmed back and a sense of reality has returned.  We’re also comforted by a steady Government and continuing low interest rates. Lower Stamp Duty (SDLT) for anyone looking up to £925,000 is another confidence boosting factor.

Whilst those looking to buy at the top end of the market are saddled with higher SDLT, property now appears the safer haven than stocks and shares. And as oil prices continue on their downward trend, it’s unlikely the stock market will recover to any great degree soon.

As an example, just last week we agreed a sale in excess of £1,000,000 to a London buyer. Having recently sold his second home in London, he chose to re-invest in property instead of the stock market, having only visited Suffolk for a weekend.  Weighing up the choices of low interest rates on his cash funds, a volatile stock market and cyber fraud concerns, he chose a lovely Suffolk farmhouse instead. A safe choice indeed, I say!


Caroline Edwards
Partner
Residential Sales, Long Melford

T: 01787 888622
E: caroline.edwards@carterjonas.co.uk

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