Good Day to you, and welcome to our new website, I hope you like it. Donna here takes the credit, it was her baby of a project and we think she has done outstandingly well.
So, the market….Well. Right now we are quite literally busier than ever. In every full month this far we have effected more domestic quotations than in any other year. We are now as a company larger than we were in 2006. Which is not something I expected to be writing this year!
Lets have a look at why though, because I am fully aware that there may be some people reading this thinking I am off my rocker.
It is not too far from the truth to think that in 2006 there were circa 120,000 completions per month, and, to service the demand there were @4000 ‘removal companies’ and probably around the same number of conveyancing solicitors.
Across the recession, and the years 2007 > 2012 the numbers reduced proportionately to the demand. Demand that settled to @45>60,000 completions per month.
I am prepared to bet that we are currently running closer to 70,000 and so the demand outstrips supply whilst all the while the market still remains depressed. And, on such note, who is the most depressed of all…….we wonder…..
Well, it takes little effort to see that properties above maybe £550,000 are struggling to sell. Indeed up above £600k and the market is struggling (outside of the micro-climate that is London). And here is why;
How much does it actually cost to move home?
There is the deposit, but many now are a-ok, they have had a few years to get straight, save a little, and generate equity, so, broadly a deposit sufficient for a mortgage is do-able, but at a purchase price of £600k that still leaves them @£33,000 short (gulp) and who has that sort of spare cash? That figure is stamp duty, legals, estate agent fees from the property they sell, utilities&supplier overlap / installation fee’s and legal fee’s. Let alone all the other myriad costs that pop out of the woodwork.
I remember hearing people talk of how the property value would soon rise to cover the costs, nowadays people realise that £33000 might build them a loft extension, an extra garage, put a shed up, and still have enough change left over for a BMW MINI and two weeks in Dubai.
£33000 used to be just a facilitator into a larger or more ego presentable property soon to provide an ever greater return for you from somebody elses money. Now, its real money, and you can’t guarantee you wont have to depreciate that money against the house just like on a vehicle. And £33000 equates to @£65 per week over 10 years, and now people realise that £65 not just ‘three purples and a bluey’ but is a Full. Weeks. Shopping.
Suddenly our decimated ‘Leccygateswithapoolandhot-tubplease’ driven ego’s look at the money and realise moving up market is no longer a free ride. The ‘never-never’ can quickly become the ‘right now, stick your hand in your wallet’, and so, with our new, cautious, temperate understanding of our own expenses we are happier to have a less ego driven property market, and as a result those in the higher stamp duty bracket are now suffering.
Although, if like me you still have an ego, the market above £500k is a wonderful place to go shopping!
Humans, we never learn.
Next property crash in 2032, anyone?
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yes, I believe things still aint right…………