Market Commentary for Kent - Aldo Sotgiu

 

MARKET COMMENTARY

 

The most significant factor in determining our sales has been the drop off in applicant enquiries which was a higher drop than the 35% reduction in enquiries in April, which in turn was higher than the 22% reduction in March.

Overall, after 5 months the level of applicants registered is down by just under a third.

This shows a decline in buyer confidence, which has also been mirrored by an increase in the abortive rate on house sales with considerably more purchasers bearing on the side of caution.

There has also been an increase in the level of down valuations suggesting that lenders are taking a harder line on values at the same time.

Borrowing money has also become more difficult and therefore it is hardly surprising that there has been a significant slow down in house sales.

House sales are down approximately a third in line with the reduction in applicant activity.  However, it is the increased number of abortive sales which has had a further impact on the market.

There are signs that vendors recognize the importance of marketing a property with a reputable agent and on the basis of “you get what you pay for” an increasing number of the low fee bucket shop agents are falling by the wayside as their fee structure has been unable to support their businesses.

The old adage “you get what you pay for” has never been truer and it is interesting to note that an increasing number of vendors are prepared to pay more realistic fees in order to ensure their property is fully and extensively marketed.

Correct pricing has never been more prominent in bringing any property to market at the right price will have a critical impact on whether your home is going to sell so take the right advice from an agent who is able to demonstrate their pricing strategy to the best effect.