A run down on the market in 2010
Thu 23 Dec 10
Contrary to the usual pattern, the Island property market started well in 2010 despite the cold and adverse weather conditions. Volumes of sales were above average for the first couple of months. Buyers were still selective but correctly priced properties were attracting purchasers, particularly purpose built flats being purchased by investors and small parcels of building land which were attracting a variety of builders and individuals still keen to build their own home. Unfortunately the General Election coincided with the Spring market and as is often the case any general election tends to dampen the market for at least a month either side of the election date and this year was no exception. The change in Government and the subsequent announcement that Home Information Packs were to be immediately scrapped created an influx of extra properties to sell for several months. As usual the media saw it differently and predicted that the flood of new properties to the market would lead to a reduction in property values. Instruction levels however, soon returned to normal and this coincided with a general upturn in viewing levels and sales.
One of the peculiarities of the Island market is that we do not see the peaks and troughs in prices that are experienced by most parts of the mainland. We are mainly dealing with a retirement market, which is not driven by a necessity to sell quickly. The general attitude is therefore to wait and ride out market conditions. Sales towards the end of 2010 have definitely picked up in volume if not in price and hopefully this will continue through into 2011. There are however, a few clouds on the horizon such as increased VAT and an uncomfortably high inflation rate, which could just lead to a slight increase in interest rates later in 2011.
Our prediction is that 2011 is likely to be a similar challenging market to 2010 however, as usual, correctly priced properties will still continue to sell. Getting the asking price right is absolutely paramount and therefore employing a highly experienced agent with a good local knowledge of the market conditions has never been more important.