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Monday 20th December 2010
Heidi’s Predictions for the Property Market in 2011
Heidi Roberts of Premier Property Finders
So what about 2011? Well without my crystal ball, who knows! But let’s take a guess..."With potential interest rate rises, (even if they are only small), January's jump in VAT to 20%, higher unemployment and steep increases in food and fuel bills on the horizon, it seems unlikely things are about to get easier for home owners in 2011. Also, media hype is definitely affecting potential purchasers' expectations regarding prices, with lower offers being made as a result.
If the media does not get too negative, there is no reason for a dip. Bricks and mortar are still attractive investments. A bit of positive talk would help the market pick up. What does this add up to? For the economy, the hit to the incomes of the ‘squeezed middle’ means lower growth because this is a large demographic that spends virtually everything it earns. However, as in any situations, there are winners and losers. I feel that on the whole, the housing market in 2011 will be a cooling market.
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Would now be a good time to buy? Hell yes! In my experience it is always a good time to buy if you’re holding property. If you are buying to sell on, then there are lots of bargains to be had and this will remain so for the foreseeable year ahead. Millionaires are made in a recession.
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The conclusion I have reached after the 10 years of madcap lending, is that house prices are not a function of demand, but are simply a function of how much money the lenders are willing to advance. Almost everything else is immaterial with the exception of the media. With few signs that the banks are going to ‘play ball’ it is difficult to see how prices can advance much further. But being of a positive nature I am still thinking that ‘Positive talk’ will help, as the media can be a powerful tool.
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