Christmas is approaching and all eyes are on the election – or are they? If you had asked us 3 months ago how our business would be faring in the last quarter of this year; with Brexit looming in January and an Election prior to that this week, we would have said we would be neck-deep in Christmas cards with my Christmas shopping already completed – as not a lot of Estate Agency would be going on. However, to the contrary, the Christmas cards will have to wait as surprisingly, we are far busier than we thought we would be. The reason being that there is a degree of “life goes on” – while there is an assumption that all buyers and vendors are waiting until next year, a shortage of stock is meaning that those focused buyers in the market have fewer well-priced properties to choose from. Over the course of 2019, 54% of the properties we have sold, have done so competitively, where offers have been attracted from more than one competing party.
In support of this, Lonres.com; the market-leading analyst, confirms that in our core areas of the period of September to November 2019 vs the same period last year, transaction levels are up 17.6%. This is however balanced by the fact that prices have cooled a further 0.9% in the same period. What can we learn from this? When prices get to a point where sensible value is demonstrated, the market reacts, and sales occur.
We believe that this demonstrates more than ever, the need for bespoke advice – this is a property-specific market and as such, advice and strategy must be truly tailored. In 44% of the sales that we have been responsible for since the beginning of last year, another agent has been instructed prior to our involvement. Through a bespoke marketing strategy, a successful sale is achieved.
Our predictions? In the short term, everything is on the table. Should we see certainty and a positive result in the Election and Brexit, it is likely that stock levels will increase therefore diluting any rise in demand. The “life goes on” factor will stay present however realistic pricing will remain key. It is likely that any growth we see will be conservative for the next 24 months or so with growth levels then increasing.
Should we see a Labour government, well; to quote the American Author H. P. Lovecraft: “The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown.”