Here are a few pointers to a better understanding of how to cure any stagnation developing within our housing markets:
The downturn for most local housing markets across England and Wales actually started to manifest before the Brexit uncertainties themselves began to take effect.
The best way to avoid cyclical downturns in housing markets is to lessen them by making sure the prices being quoted are as genuine, fair and as fully transparent as possible. That’s something that clearly isn’t happening and cannot happen whilst the agents negotiating each transaction are acting primarily for sellers with unrealistic expectations coupled with a percentage to be extracted by the agent on completion.
As buyers are being ‘turned off’ more and more because of over optimistic asking prices, sellers are simply failing to sell and so the markets are forced into stagnation.
Eventually, sellers have to lower their prices when they are forced to find buyers, because they need to move and cannot wait any longer. It’s an uncomfortable situation for both parties by this time. The one redeeming aspect of all this is that having just sold, the newly created buyer will be able to negotiate to a similar degree with the sellers of the next house they decide to buy!
This set of circumstances happens in almost predictable cycles across all housing markets and it has been doing so for many decades past.
It’s time to move to resolve this cycle of crises for the sake of everyone involved.
The ONE way this may be accomplished would be to change the way houses are marketed by using agents to assist buyers in searching for and purchasing their next house to live in and no longer use agents acting solely for vendors or sellers.
For more information about how this may be accomplished, please read the following series of articles on this blog, especially the one found on the link below – The Hendry Solution. It gives full details of my proposals for resolving this issue and explains the method to improve the workings of all housing markets across England and Wales:
Peter Hendry, Consultant in Housing Valuation