The property market never ceases to fascinate me. If I had been writing about residential sales in Harrogate 20-years ago I would have been describing a scene of 30 to 40-year old middle income families looking to upsize by taking the next step up the property ladder together with a healthy input of young twenty something buyers entering the market for the first time. The older generation; retirees and those approaching retirement age would be content in their mortgage free home and enjoying or looking forward to enjoying the fruits of their labours with a good pension. All-in-all the market was in equilibrium with supply matching demand. Fast forward 20-years and the picture is somewhat different.
Today the 30 to 40-year olds are just as likely to be our first time buyers competing against a crop of over 50s who are looking to the buy-to-let market to supplement their dwindling pensions. Added to the mix are London investors priced out of the capital’s booming property market who are looking north for lower prices and better returns. While our middle income families, now in the 40 to 50-year old age group appear to be content to sit and wait for prices to rise ever further before deciding to move.
And the market? Well demand is far outstripping supply. There are considerably more buyers than there are sellers and this fact is pushing prices ever higher.
The “feel good factor” will undoubtedly remain until the general election in May 2015. However, the talk is of interest rate rises within 18 months and of mortgages being hard to obtain as lending criteria is tightened as a result of the Mortgage Market Review, which comes into effect from April.
For the last few years the tide has been coming in and prices have been rising but at some point the tide will go out. Maybe those content to wait for prices to keep rising should act now before the next shift occurs. If you would like an honest and realistic opinion about the value of your property then please call Richard Smailes on 01423 534 193.
