Houses are selling again!
I am delighted to report that many of our houses are flying off the shelves, some before we've had chance to properly advertise them, and one even before I'd had chance to photograph the property!
Over the last couple of months so many people have asked me why property sales are suddenly so much better. My answer has always been short and honest - "I have no idea". Which is true. The national and European economic outlook remains gloomy and we continue to read about business failures and redundancies locally and nationally. And yet, after five years of trying to keep our business afloat, like so many others, the sun has suddenly come out. So far, 2013 has seen a real resurgence in the local housing market, particularly in the mainstream property range (£80,000 to £200,000), but why?
Yesterday, Tanya Powley offered a possible explanation in the Financial Times in an article called "Homeowners lured by low mortgage rates" in which she explained her findings that lenders are cutting their deals to record lows, resulting in mortgage lending jumping to its highest level since the start of the credit crunch, back in October 2008. And the lenders can offer these great deals thanks to the government’s Funding for Lending Scheme launched last August.
Is this good news?
Well, it is for us, as if we don't sell houses, we don't get paid. And it's good for the local economy as many types of businesses benefit from an active property market. My only warning is to the buyers themselves. If you want to buy, great, but for heaven's sake get proper advice from an independent financial adviser. Low rates are wonderful, but interest rates will eventually go up, so don't overstretch yourselves, otherwise one day you might find your monthly mortgage payment is more than you can afford. By all means talk to your bank, but get independent advice as well. And if you don't know a good independent adviser, give me a shout - the people I use personally are second to none.
And long may the sun keep shining!
Oliver Hudson, Managing Director, Hudson Property
21st June 2013
To read the full article from yesterday's FT, please use this link: http://www.ft.com/cms/s/0/95cd42e0-d998-11e2-98fa-00144feab7de.html#ixzz2WqQK9Znc