News - Market update - July 2010

It is clear that the Coalition Government is planning considerable changes which will have a major impact upon business and private lives.

 

The prospect of job losses in the public sector will impact upon the property market.  At the very least, many will not wish to take on additional mortgages or seek alternative property at a time of employment uncertainty.  Any Ministry of Defence cutbacks are also likely to affect Portsmouth as the home of the Royal Navy, and the numerous companies in South Hampshire who supply a wide range of services to Naval establishments and the Fleet.

 

It should not be a surprise there is a lack of confidence and hesitancy among purchasers and prices have been drifting.  There is an encouraging increase in availability, our research indicates that local instructions increased from 591 in January to 921 in July.

 

 

 

 

January              591                        291                 300                  27

 

March                679                        337                 342                  32

 

June                   831                        407                 424                  30

 

July                    921                        458                 463                  29   

  

 

Nearly 80% of properties are now priced under £250,000.

 

Low interest rates continue to benefit those with mortgages.  Savers and investors, however, are increasingly desperate and there is an appreciation that investment in property can be more profitable.  Significantly, there have been a growing number of private buyers at our regular property auction sales, whilst some of the regulars have been conspicuous by their absence.

 

With the summer and school holiday periods ahead of us, we do not anticipate any significant change for the months ahead.

 

Our new website is now online providing more and quicker information about our properties and our services.  Click on!

 

 

DAVID NESBIT FRICS