Why Buying Before Christmas Might Not be Such a Daft Idea
Thursday, October 29, 2015 by George Franks
Any purchaser thinking about buying before Christmas might have read that in certain parts of Central London asking prices are beginning to fall. This is translated in their minds to a market that is falling and therefore, not unreasonably, they delay a buying decision to see if they are right. Estate Agents, who let’s remind ourselves are paid by the Vendor, constantly try to achieve as much money for a home as they possibly can. This means pushing asking prices to a level where buyers eventually dig in their heels, when of course the prices have to start coming back again. This is normal market give and take. As a company the prices that we are actually agreeing for properties have not actually fallen. Remember asking prices are not necessarily a true reflection of what the actual market is doing,( possibly a greed index? )
Taking advantage of a lull might be the preserve of the discerning buyer perhaps. I genuinely don’t believe it will go on for very long, the reason is because most city forecasts, and I don’t mean property companies, are projecting that the market will increase next year. We have to accept that the amount of property on the market is at an all-time low and I can see no reason for this to suddenly increase. Generally in January we register more applicants looking to buy than any other month, and it looks likeinterest rates are going to stay lower for longer. All this when added to the fact that Vendors can afford their debt means nmost do not have to sell and would prefer to wait. There are no (few?) forced sellers out there. Buyers however, can take advantage of the cheap money and grab themselves a nice property without so much competition before prices start to edge up in the Spring. My advice to a buyer is to stop waiting for the market to fall, because it won’t and my advice to a vendor at this time of year; don’t be too ambitious on price. There’s an old London saying, you never pay too much but you may pay too soon.