September Director's Desk - The Pendulum
Monday 14 Sep 2015
I think we are at a very interesting point in the property cycle. The pendulum is swinging but it is certainly not slowing.
Now, I have never believed the market cycle is reliant on a ‘boom or bust’ scenario. That might be the perception in the media but I rather think it swings more like a pendulum. Yes there are highs and certainly there are going to be lows. But as with a pendulum even though it can be knocked out of sync it will eventually return to its equilibrium.
And that’s the way it predominantly works with property demand and property prices.
It’s tempting to believe it can change overnight. Undoubtedly the market is influenced by variations in interest rates, stock market fluctuations, international economics and domestic politics. They may start the pendulum swinging in the other direction but rarely will any of those factors cut the market completely.
So where are we now?
After so many months of high demand I think we are starting to see the pendulum moving the other way. But I’m not talking prices.
As I explained in my blog the fear of missing out that drove the amazing demand we saw in the early months of this year has subsided.
I think potential buyers are holding back a little in the belief the market is easing so a better deal might be possible in the days or months to come.
Ah, but the trick is knowing when to make the move so you don’t end up missing out. And indeed whilst demand has slowed the market remains active. There are still sufficient buyers keen to move to sustain solid prices.