The Land of Opportunity

With the summer behind us Richard Killoughery of Christies takes a look at how the property market is shaping up this autumn.

Some commentators consider that the property market is still over-valued by up to 20%.  And that somehow it is tenuously suspended above reality by the slender threads of easing, very low interest rates and a little market traction generated from central London.  These people predict a hard landing. But is that very likely? 

Although there are doomsayers who predict more falling property prices theirs is an overall view and each region will behave differently: there may well be enough activity to ward off further slippage.  There certainly seems enough life in the market generated by those making non-discretionary sales and purchases.  If this continues until the banks and other lenders finally sort themselves out and do what they are supposed to do, then another bump should be avoided.

But where is the activity that we do have coming from? Buying and selling property in this market is certainly not the exclusive province of the fortunate: it is the exclusive province of the determined.  Few, in any part of the market, who don’t need to move home are doing so.  But there seem to be plenty of people whose lives and circumstances are leading them to buy property.  It is this group that is keeping the market as buoyant as it is, and these who in time will no doubt be very pleased that they acted when they did, as this is a market of certain opportunity. To all those politicos who insist we have a housing crisis this may all come as a big surprise.  They need to accept the fact that what we really have is a crisis of mortgage lending coupled with low confidence - it’s the economy, stupid.  In some respects a housing crisis may even be preferable to the perfect storm we have now.  Which is why our leaders may be calling it that.

For those determined souls who are coming into the market there are some pitfalls to beware of. Sellers with too ambitious an asking price and unreasonable expectations in the prevailing conditions will really find things tricky.

Buyers should remember that while the market favours them it does not favour them completely. Realistic offers will be treated, at worst, with polite encouragement.  Unreasonable offers will not.

But treat buying, selling and others – including us estate agents if you will! - with a little understanding and there really are some great deals to be done, even in this market.  If you are determined, then welcome to the land of opportunity.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

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Crystal Balls

Nick Churton of our Mayfair Office predicts what will happen to predictions concerning the property market next year.

It is the time of year when some in the property game are tempted to look into their crystal balls and predict what will be happening in the market in the year ahead.  A quick look at how correct last year’s crop of predictions from industry spokesmen faired shows how dubious making predictions is. These outpourings won’t change anything and are pretty soon forgotten – if they were ever remembered in the first place.

What really affects the market is confidence and that’s something that is impossible to predict. Confidence doesn’t come from an upbeat industry or government prediction. It creeps unseen and unnoticed into the national psyche.

Borrowing remains difficult and new home starts remain limited. We are at a forty-year low in private home ownership and we don’t know when, if ever, this will change. The national economy is more than ever tied to the behaviour of other countries and regimes that we have little or no control over – any more than we seem to have over our own financial institutions. There are so many unknowns today affecting the market that prediction seems pointless.

Yet our Mayfair members have seen better trading for the fifth year running since the banking crisis.  Are homebuyers choosing to enter the market because national circumstances suggest they should?  Hardly.  It is because personal or family circumstances suggest they must.

Market excess is when discretionary buyers sense the opportunity for a significant short-term capital gain. A balanced market is when buyers need a property as a home first and perhaps a long-term investment second.  Right now we are in a more balanced market.  Some predictions suggest that it will not be until 2019 when we re-attain the heady days of high property values that were encouraged by delinquent lending.  We should all be careful for what we wish for.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

Latest Local Property Market Price Index from Christies

The latest Christies House Price Index, using the most up to date reliable data from the Land Registry, confirms that property in the local area continues to represent an outstanding investment.

Medium and long term gains are exceptional. Based on past performance anyone looking to buy a property in the coming months will be very encouraged to see that prices have risen by 35% over the previous ten years and by an astonishing 168% over the previous 15 years.

What is perhaps even more impressive is that prices have risen by 2% since the start of 2012. Remarkably, in spite of the down turn in the property market since 2007/2008 prices are still within 4% of the level reached 5 years ago.

The comparison is based on the average price of all local properties sold including flats, maisonettes, all types of houses and bungalows. Figures for October & November are not yet available - the Index will be revised as soon as the data is released so please check this page regularly for any updates.

Date............Average Price.........Average Price May 2012.......YEARS............INCREASE

Sep-97..............£93,438..........................£250,531...........................15.....................168%

Sep-02............£186,236..........................£250,531...........................10.......................35%

Sep-07............£261,303..........................£250,531............................5.........................-4%

Over the years, and particularly in recent times, demand for properties in Cheam and the nearby areas, such as Sutton, Ewell, Epsom, Banstead and Kingswood, has increased dramatically. Much of this demand is due to the location of the properties we sell, which are ideally situated on the fringes of London, bordering rural Surrey greenbelt countryside with picture postcard villages and market towns full of rich heritage and character.

Buyers flood into the area to take advantage of a wide range of leisure and shopping amenities. The local schools are nationally renowned and attract large numbers of enquiries, ensuring that property sale levels and prices have remained well above quoted national averages.

Cheam Village has a flourishing local community with many popular cafés, restaurants and varied independent shops and businesses; this, coupled with many high street names, creates an enviable mix of retail and food outlets. Combined with excellent road and rail links, demand for property remains constant and represents an exceptional investment.

Christies have an unparalleled understanding of the area and are dedicated to ensuring customers are always informed – not just on the property market and prices ,but also the area and amenities. When looking at buying a new home, we believe it is imperative that our purchasers are fully informed about all aspects of the potential move.

Your estate agent should be able to answer any of your questions regarding this. We are proud to represent this area and convey that passion to anyone looking to move here.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

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Two Heads...

On the basis that two heads are better than one, then one hundred heads are a great deal better still. Andrew & Jeremy Richardson of Christies recently joined other highly regarded estate agents at the annual Mayfair Group conference at the prestigious RAF Club in London’s Piccadilly to add their experience and know how to one of the most important meetings in the property calendar.

The estate agency world moves so fast nowadays. Information and the flow of it have turned a rather slow-working, paper-ridden business into a lightning fast service that uses all the latest technology. But there are still important factors between yesterday and today that have not changed, like the crucial responsibility of helping clients with their most financially important assets.

Technology, national and international marketing, working together, photography and advertising were discussed during a lively and thought-provoking afternoon. The Mayfair Group represents over 450 offices worldwide including over 300 offices throughout the UK.

Firms from all over the UK, and several from Canada and the USA, were represented. 

Andrew Richardson of Christies says, "This conference is very important and next year’s is already in the diary. Working together is what sets the Mayfair Office Group apart. Being local experts is important, but so too is working together with the best in the business across the UK and overseas. The Mayfair Group conference brings all this amazing property expertise together with one aim – how we can all work better, smarter and more successfully for our clients."

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

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Voting for Christmas

With Christmas fast approaching Richard Killoughery of Christies takes a look at how the property market is shaping up as we approach the holiday season.

In these austere times, especially in the run up to Christmas, it is quite natural to want to get the best deal going, particularly on big-ticket items. And there is no bigger ticket than property.

There are lots of ways to try to get a good deal when buying or selling a property. A favourite is to attempt to buy a house for less than it is worth. Would you sell your property for less than it is worth? No you wouldn’t. And neither will anyone else in their right mind. Another way is to try to get someone to buy your own home for more than it is worth. Would you pay over the odds for a house?

But what is a property really worth? That is an emotive question that always has a subjective answer. Nowadays a fun thing to do is to look up the value of the property in which you are interested on one of the many internet property portals. You may be delighted at the stated low value - until you look up the value of your own property. It is then that you discover what a complete farce it all is. Because the value of an individual property can’t be determined through some clever algorithm.

Yes, value is influenced by recent local sales, details of which can be stored on a database. But value is also determined by appearance, proportion, condition, orientation and running costs. It is determined by décor, cleanliness, smell and feel. It is determined by places to put things like cars, clothes, vacuum cleaners, empty suitcases and children. Then there are the neighbours, the nearness to local schools, shops and public transport, the view, the garden size, the state of the market and the desire of the buyer. These issues can’t be quantified by data that can be stored on a database. Even in a street of identical houses one side of the street or one end of it is usually more desirable than the other – and therefore more valuable. But an algorithm doesn’t know that. Sentimentally put, it is one’s heart that knows the value of a property. And commercially put, it is an experienced estate agent who is best placed to advise.

And it is estate agents too that are in the minds of dealmakers. Of course we all like to get a bit of a bargain – especially at the moment. But there must be limits. Some sellers seem all too happy to put their most valuable asset in the hands of an inexperienced and/or cut-price firm of estate agents or an online lister. Why would they do that? Thousands and even tens of thousands of pounds are at stake in the sale of their property. It is like turkeys voting for Christmas. A cut-price surgeon doesn’t seem a very good idea for one’s health medically, and likewise a cut-price estate agent may not be very good for one’s health financially. Estate agency is one of those areas where, for relatively little extra cost, there is a greater likelihood of a much larger return, not to mention valuable reassurance during a difficult time. And remember, unlike surgeons, estate agents don’t get paid at all unless their clients agree with the results! Sometimes economies can be false - few more damaging than in property.

So there you have it. Try and cut corners and your move will rarely be anything other than a headache. Don’t cut corners and your move may still be a headache but you could end up with more money in the bank or a better roof over your head. It’s your vote.

Please contact either Andrew Richardson, Jeremy Richardson or Richard Killoughery on 020 8643 7777 to get moving or email us at sales@christiesworld.com.

www.christiesworld.com