There is little point in suggesting that the current housing market is anything but tough. But, I’ve seen worse, namely 2007-2008 and in the immediate aftermath of September 11^th 2002. However, these markets were very different. 

The crash created strangulation in the market, largely because liquidity in mortgages was brought to a sudden and alarming halt. In the summer of 2007 there were over 7,015 different ‘sub-prime’ mortgage products available to customers, fast forward a year and this was ZERO. This had a major impact on non ‘credit-impaired’ mortgages and numbers fell by nearly 95%.

What this created was not a market where people didn’t want to buy a property, but one where they were simply unable. Prices were falling so dramatically that interest was piqued incredibly quickly – but, getting funds to those who wanted to buy was impossible. 

After 9/11 it was a different matter altogether. London was in the grip of obvious and raw sentimental reasons for putting property to the back of one’s thoughts, and quite rightly so.

In terms of cycles, especially those in London, the market was due to stall at some point between 2018 and 2020 anyway, but Brexit caused it to start earlier and last longer. Why? Largely because the time it has taken has led to an unprecedented time where sentiment is low, market forces are stagnant, stock levels are drying up and decision making is not easy for all concerned.

So, what can you do to make your move viable? Either as a buyer or as a seller.

It is a good time to buy!

Curiously the majority of people want to buy when other people are doing the same. Trends in property tend to rely on large groups of people copying each other, which means the more people that are buying the more prices will be moving in an upward direction. Bizarrely this means the majority of homeowners will have bought in an upwardly moving market, sometimes even at the top.

Arguably the best time to buy a property is at the bottom of the market, or when it isn't being flooded by others doing the same as you are.

Know your competition.

All commodities will be compared to their competition; be it a car, a phone, a holiday, a television – everything we purchase we do whilst asking ourselves this question “is this the best my money can get me”. If you know your competition, and you evaluate that competition in a non-biased and sensible manner, you will be able to evaluate how you fare against what else is on the market. The key is to take off the rose tinted glasses and make a judgement on where you sit compared to other properties. 

Don’t try and keep up with the Joneses.

Selling or buying a home is not about doing or repeating the actions of others. If five people on your road are using a particular selling agent, there is little point in joining them. You need to stand out, both to those looking to buy and to the people working for those companies. What makes your house unique? Why is someone going to buy your home over something similar? Standing out is better than fitting in when trying to sell your property.

Are you buying onwards?

In a tough market you must factor in your overall move and the budgets you are trying to meet. If you are having to sell at 10% less than you had hoped, then it is fair to say you may be able to buy at 10% less. Factor this into every offer you receive and make decisions based on your NET result, not on where you stand against your asking price. One thing is true, if you are holding out for 100% of your asking price, then now might not be the time to sell. 

Do your research?

Whether you are selling or buying, do you research! One property will differ from another in any market. But, in a tough one you must be armed with the right information to be able to discuss any offers you make, or receive, properly. Is the buyer able to buy? How does your home compare to others on the market? Why is the owner selling? What other properties have they offered on? What timescales are they looking to meet?

............................................ 

Overall, my advice would be that in every market there are opportunities to be had. Those that will look back on this period favourably in years to come are the people that have taken the time to truly discover what a tough market may be able to offer them, whether you are selling or buying.

Carrie Scott