End of Year Analysis

As we spring towards the end of 2009 we can reflect on a turbulent couple of years for the nation’s housing market. Now we are beginning to recover from the effects of the credit crunch we can look back on the facts and figures.

Many experts from within the housing industry expected dramatic falls in property prices and this has not come about, due mainly to a shortage of property available on the market.

What is quite shocking is the decline in the number of sales since 2007, according to the Land Registry the number of sales completing month on month fell between 29% and 64% compared with the same months in 2007. Dramatic reductions indeed which have continued into 2009 with circa 50% drops in January and February slowly decreasing through the first half of the year. Since July we have seen a steady increase in sales running in line with increased mortgages.

If this trend continues into 2010, and we hope it will, the outlook is considerably rosier. The banks still hold the key and although there is increased lending, it is still substantially lower than we have been used to over the last decade. The scaremongers are still predicting falls in prices for 2010, but I honestly believe that although there will be no boom, a further freeing up of mortgages will help prices recover slowly through 2010 with a steady market.

October in the South Hams has been a busy month with half term bringing plenty of buyers to the area. Quality properties with water views have been in high demand and this has continued into early November. As prices hold steady the writer is looking forward to an active new year and although there is some increase in the property coming to the market, it is not in sufficient amounts to threaten any recovery. We at Richard Blake Estate Agents would like to wish By The Dart readers a very Merry Christmas and a prosperous New Year.