As 2019 kicks off, Paul Wilson shares his thoughts on the local housing market

A recent survey showed that East Sussex has some of the most expensive postcodes outside of London, but could that mean that property is over priced and hard to sell? We asked Paul Wilson of Rowland Gorringe for his perspective on the market as we enter 2019. This is what he had to say:

If you have read or listened to the media recently, you would probably believe that the property market was dead and buried and that no one would ever move again.  Needless to say, that would be an untrue statement.

It is a fact that some Estate Agents are finding the present market conditions tough, but that is probably more a reflection on their business model and experience rather than an accurate assessment of current market conditions.

I have a saying I drill into my team, “Any one can sell homes in a good market, it takes someone with real skill, focus, determination and desire to sell homes well on a tough market”.

I see reports that house prices are crashing, but generally this is untrue. Some rather ambitious asking prices are now being adjusted down to realistic levels, sometimes by many tens of thousands of pounds, but this is just a slight exaggeration as to what happens every autumn, it is just the usual seasonal adjustment we see every year as the wet and gloomy days of winter arrive.

So maybe this isn’t the end of the world after all? Maybe it’s just the housing market having a breather?

It is true that actual sale prices have now begun to dip below the level we were at in the spring and summer, but we must put this into context. It is too easy to forget that over the last eight years, in the South East, we have enjoyed a continual increase in property values, to the tune of almost 45%. In layman’s terms, that means that a home valued in 2010 at £300,000 would now be in the region of £430,000. All that following what has been described as the worst financial crash for generations. So, if that home is now selling for £410,000 instead of £430,000, unless it was bought in the last 6 months, is it a real loss? After all, all things are equal, if the home you are selling is now a few percent cheaper (?) than it was, so will be the next home you buy.

As to the “B” word, I am of the strong opinion that for every person who has strong concerns about the effects of Brexit and is therefore not going to move, there are an equal number of people who are also concerned, so much so that they are looking to move, right now!

There are also all those potential buyers who feel that they will be unaffected by forthcoming changes to national policy, so will just go ahead and move regardless.

So, if you are wanting to move, the message is very much “Keep Calm and Carry on”. Do take the trouble to “stage” your property for marketing, do be realistic with the marketing price, do choose the estate agent who shows continued success with other properties similar to yours, do seek independent recommendations and do expect to pay a realistic fee, because marketing property properly is not cheap, either in financial or time terms, so if an estate agent is offering a cut price fee, do ask yourself “will they be offering a cut-price service?” Anyone can flog something cheaply, only a professional will ensure you get the absolute best price.

As we approach the New Year, we are already being asked “When do I move?” My answer, as always, is “Whenever you want to!”  Market conditions will be what they are. An experienced agent will adapt to those market conditions. There is definitely a shortage of properties currently on the market just now, so why wait until there is more stock to compete against? There are enough serious buyers looking to move tight now, so what are you waiting for?

Thank you to Paul Wilson from Rowland Gorringe for the contents of this article.