Festive Furore and Fatigue
Wednesday 09 Dec 2015
The intense reaction to the change in market conditions that have been taking place over the last few weeks is significant. It’s a demonstration that we have become accustomed to the idea that the only way is up.
As I have said many times before, it’s a nice concept but not realistic.
So now it’s time to recalibrate. The sums need to be calculated a little differently but I think those who resist the panic and take the time to do the numbers will see that property is still a good investment. It can still deliver healthy returns in both rent and capital gain.
And take note: Prices are still up over 12% on this time last year.
Right now we are seeing two extremes but they are actually not unusual for this time of year.
The countdown to the holidays is always hectic. For some the desire remains strong to buy ‘before Christmas’. We have auctions scheduled for the next couple of weekends and whilst the timing is tight as everyone juggles their hectic pre-Christmas schedules, there are buyers are out there keen to finish the year with a deal done.
At the same time it is true that some potential buyers have eased back. They’ve decided to focus on the holidays and leave the property search until ‘next year’. I think that group is probably larger this year than it has been in recent years due to a combination of end of year fatigue and market uncertainty.
But it is important to realise those buyers haven’t disappeared. Our experience is that once the holidays actually start and life calms down after Christmas the level of activity picks up quickly. With more time and a clear head those who did not achieve their property goal in 2015 will be keen to get back into the market as soon as possible.
Our offices will close on Friday 25th December 2015 and reopen on Monday 4th January 2016 with our agents ready to seize the momentum and respond to those holiday enquiries.