12 Mar THE housing market faces a “make or break” few weeks, a leading property expert has warned.
THE housing market faces a “make or break” few weeks, a leading property expert has warned.
Jonathan Rolande says we remain at “a knife-edge” moment despite prices holding up better than predicted.
Mr Rolande, from the National Association of Property Buyers, said: “There is still enormous demand from buyers but they are having to be more careful, choosing properties that they can afford or making lower offers where prices are out of reach.
Although the downturn has been far from the crash in prices many predicted, the property market is still very much on a knife edge.
“Unable to rely on ever-increasing prices, buyers are now much more wary of defects such as dampness, dated wiring and heating and other repairs.”
Highlighting why the next few weeks are particularly crucial he explained: “Much as the hospitality sector relies on the Christmas period to make a large proportion of its annual income, in the property sector it’s the spring period that sees the most sales generated. Many properties will have hit the market just into the new year and after viewings and negotiations, deals are done in the long spring afternoons.
“Those on the frontline, estate agents, will be anxiously reviewing sales figures as they see stock building up and not being processed through as a sale.
” More stock means more admin, higher fees on advertising, more viewings to attend – without sales to offset these increased costs, some won’t make it through.
Mr Rolande said the ongoing economic uncertainty is having a major impact as well.
“Affordability has been hit by anyone needing a mortgage,” he continued. “Put simply, thanks to rising interest rates, buyers can afford to pay less each month and so must reduce the size of their loan to compensate. This has, and will continue, to feed through into sales volumes and prices.
Sellers take a while to adjust to a new reality – strangely we all remember the top price a property has been worth and we struggle to let go of it when the market changes. Estate agents are working hard to educate sellers in terms of expectation versus reality.”
Pointing out the positives within the current market he said: “Despite these challenges, the market is proving to be robust. Demand is high, supply relatively low and prices are for now holding quite steady so far not completely eroding gains made the year before.
” If the property market falls off a cliff, so will thousands of businesses across the country. Mass unemployment and recession will follow. Banks will cut back on lending. Fewer homes will sell, not more. That’s why the Government needs to do everything it can to avert a crisis, without adding too much fuel and igniting another boom.”
