VENDORS AND BUYERS HOLDING BACK
We are seeing more evidence of a stand-off in the market as people delay making decisions because of uncertainty.
Buyers are hesitant about taking the plunge – wondering (or hoping) that prices might ease-off when there is a greater supply of homes for sale or when they feel more confident about job security.
In contrast, vendors are hesitant to list their properties for sale -wondering (or hoping) that prices and demand might increase if they wait a bit longer.
The result of all this uncertainty is that price expectations are high, often too high, for those properties that are currently available for sale.
Unlike owner occupiers who often justify purchases on emotional or non-financial reasons, investors are increasingly hard-pressed to find property assets that stack up against fundamental investment criteria.
It seems the only people buying at the moment are mainly those with no choice, such as owner occupiers who must relocate or households upgrading an existing home and therefore often buying and selling within weeks of each transaction.
Investors, however, are being much more canny and are standing back waiting for evidence of where the true market level is. This is not expected to emerge until after Easter, and even then it will be within the traditional slower winter market period. Although there are still some good investment-grade opportunities available, they are harder to secure.
UNTIL NEXT WEEK