Round up of 2010

21 Dec 2010

I think we're set to end the year at a slightly slower pace than we started, the housing market slowed yet again in November. The lack of confidence, finance and first time buyers are all contributing factors. According to the latest survey from the Royal Institute of Chartered Surveyors house prices continued to fall due to a lack of housing stock and mortgage availability. In the years that I've been active in the property industry (since early 1990's) i've always found November to be one of the busiest months of year, but not for 2010.

The beginning of the year started well with a flurry of activity. New confidence was building due to the election which would hopefully bring new hope in the financial market. Things started to change and slow down after the new government was elected/formed and with a continued squeeze on finances the country was really feeling the pinch. This completely put an end to any hope of the market recovering and this has continued throughout the summer and into the autumn/winter.

A simple lack of demand is driving the market down and i'm currently sourcing houses for sometimes over 50% less than properties i sourced on the same street in 2007, and this is happening on a regular basis.

Let's Invest are sourcing deals continuously but patience really is a virtue in the current market as some deals can take months to come together but they're worth it when they do.

Ian Perry, spokesman for RICS said: "There was little change in the housing market in November; prices continued to edge lower and sales levels generally remained subdued. Despite some better economic data, fears over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers' minds, with many deciding to 'wait and see' until the new year"

So what should people do who have money to invest?

Now is the time to buy, if you sit and wait for too long the market will change before you've noticed and it'll be too late. The market may still continue to fall slightly but in my opinion it's basically hit rock bottom.

Warren Buffett once said, "Be fearful when others are greedy. Be greedy when others are fearful.”