Article Category
Now is the time to sell as buyers sit on cash
Posted: 2009/03/26
IF you think this is not a wise time to put your home on the market, think again.
According to one of the country's leading estate agents, there is a shortage of houses for sale. Agents Strutt and Parker say they have been witnessing not only an increase in the number of inquiries from potential buyers but also a rise in viewings.
Despite this, although some of their offices have a healthy stock of properties, others say that the number of properties being put on the market during the first couple of months of this year is down by as much as 60 per cent.
Carolyn Campbell of Strutt and Parker, in Glasgow, said: "There is a perception among the general public that property is still not selling, but, for the last six weeks or so, potential buyers are contacting us, and we are selling properties.
"But the irony is that stock is not being replenished with new properties, at a time when the number of inquiries about properties from people wanting to view and register as applicants gets back to the levels of last summer.
"When we are talking to potential buyers, we hear a lot of them saying they have been looking at the property portals and can't help but notice there's not an awful lot of new stock from one week to the next. Period family homes priced around £400,000 and upwards are particularly thin on the ground."
She added: "It is understandable that, in difficult economic conditions, when confidence is low, the natural inclination is to sit tight - to do nothing.
"However, a lot of people have sold in the last six to nine months and are sitting on cash, living in a rented property, and now see value in the market when property is sensibly priced."
Potential sellers keen to upsize are being particularly encouraged to do so at the moment. "Demand, especially for period family properties, is high at the moment and, given that many of those potential buyers chasing them have cash, sellers are in a stronger position than they might think, " said Carolyn, pictured right.
And housebuilder Stewart Milne Homes in the north of Scotland is also witnessing a significant increase in the number of visitors to their developments in Grampian and Tayside, a rise of nearly 110 per cent compared to visitor levels during November and December of last year.
Levels have been especially high at their newest development, Leathan Fields, in Portlethen, south of Aberdeen, where they have been seeing around 50 visitors each weekend in 2009.
Mike Cowie, sales director with Stewart Milne Homes North Scotland, said: "Homes are always in demand, because people will always want, or need, to move house.
"However, recent changes in the economy have posed challenges that prevented many from doing so.
"To offer solutions that keep homebuyers moving, we have continued to develop packages that help overcome concerns such as fi nding a deposit, obtaining an affordable mortgage and selling an existing property.
"Across our portfolio of developments, we are offering part-exchange plans, assured sale, shared equity and a newly launched first-time buyer plan.
"These tailor-made purchase plans are proving popular with our customers and, since the new year, it has been encouraging to see the number of people visiting the developments, making reservations and moving in."
Information:
Strutt and Parker - 0141 225 3880, www.struttandparker.com;
Stewart Milne Homes - 01224 747400, www.stewartmilnehomes.com
