From recession to recovery?
Since the beginning of 2013 we have seen a significant uplift in both the number of property viewers, and perhaps more significantly, in the number of purchasers who are actually in a position to commit to a contract.
The winter has traditionally been considered the wrong time to market a property for sale so why has 2013, thus far at least, bucked the trend?
There are three possible reasons –
With interest rates at an all time low for investors and with the rental market becoming increasingly heated with demand outstripping supply, we are seeing more people than ever before entering the buy to let market. Returns are excellent for properties in good condition and located in the best areas and as a result demand for quality flats and up market housing is on the increase.
Although mortgage availability is not what it was several years back with first time buyers now requiring significant deposits, there is more money around now for those taking their first step on the property ladder than there has been for the last couple of years. With the oil industry boom having placed flat rentals outwith the reach of many people, we are seeing increasing numbers this year of young people again moving into the property market having spent the last two or three years saving up their deposits. Last month within the space of only a few days we were able to set a closing date for a small house in Cults after approximately 70 viewings and with 23 notes of interest! In the dark days of 2008/2009 it was fair to say that we felt these days were long gone!
Finally, we are, for the first time in many months, seeing increasing numbers of new workers moving into the area – having an effect both on the rental and property sales/purchase market. Recently built commercial developments at Westhill and Kingswells have attracted an influx of workers looking to buy not just in the immediate vicinity but in the city and on Upper and Lower Deeside.
Although we are still some way away from the heady days of 2007 and rapid property inflation, here in the North East we are in a very fortunate position and there are many indicators which would tend to suggest that there is most definitely a recovery underway.