The Royal Institute of Chartered Surveyors has reported greater optimism amongst estate agents as buyer enquiries have increased.
Meanwhile Rightmove has reported that average asking prices for new homes rose by 2.8% month-on-month in the four weeks to January 10 – the biggest increase for any month since 2015 – after a 1.8% fall in the previous four weeks.
Does this mean the property market is bouncing back and prices are about to surge higher?
As much as I would love to say that this is the case, the reality is that the more likely reason for the bounce is pent-up demand being released after the shambolic run up to the Budget.
As you may recall, between the end of August and November 26th, a day wouldn’t go by without someone mentioning a punitive mansion tax or some other disaster that would befall the UK property market. In years to come, I’m sure that it will be used as an object lesson in how not to handle a major announcement.
Anyway, the catastrophising proved to be wrong and people are now trying to get on with their lives. However, this is unlikely to lead to a surge in prices and as Rightmove notes asking prices are basically back to where they were last summer just before the Budget buffoonery started.
Also, the number of available homes for sale is at its highest for January since 2014.
Of course, these are national figures so not hugely helpful. You need to have a very clear understanding of what is happening in your target area, price range and the style of property you wish to buy otherwise you are going to make an expensive mistake.
In London, prices can vary dramatically within each street let alone different areas, so do you really think you can make an informed decision if you are relying on generic figures?
If you are serious about acquiring a property and would like to discover the information I provide my clients, please email me at jeremy@mercuryhomesearch.com.
