Market Commentary for Kent - Lee Crane

 

MARKET COMMENTARY

 

For me the most surprising thing for the start of 2008 has been the reduction in the number of listings. With gross sales 21% down, you could be forgiven for thinking that the buyer was king. The reality is that listings are also down 20% and therefore there is not as much stock to choose from which, on a supply and demand basis, will I believe keep prices relatively stable.

In addition a further cut in interest rates should encourage a good number of buyers into the market, which is another indication that prices will hold.

It is a great shame that some of the sensationalist remarks made by many of the property media ‘specialists’ have scare mongered a large number of people away from committing to buy. Claims of the market reducing by 30% over the next few years have largely been unfounded, and are in my opinion, very unrepresentative of the current market.

Whilst we have seen prices come down over the last few months, it is interesting to note that we are still selling properties at prices 3% higher than at the same time last year.

There is, however, one area of concern, which relates to the credit squeeze. We have now seen the end of 100% mortgages and with many lenders now looking for a 10% deposit from buyers, it is alarming that a deposit plus buying fees is, for many first time buyers, likely to equate to a year’s salary. It will be interesting to see whether the Government recognises this issue and takes action in order to support first time buyers by aiding them with the purchase of their first home. Perhaps, a reduction in stamp duty thresholds, Mr Brown?

Brisk viewing levels across the Area, indicates that there are still plenty of people with confidence to go out and buy today. This could be very wise as it could be that we have seen the best of price reductions already.