Attracted by the low interest rates and reduced prices estate agents are reporting an increase in the number of sales in the first 2 months of 2009, particularly among first time buyers and those returning to the market having sold their properties in the last 18 months.

 

However as everyone entering the market is finding, choice is becoming limited with new properties coming to the market down 32% on this time last year and as we all know the laws of supply and demand dictate that this will and is starting to force prices back up.

 

Competition is becoming fierce for the best properties and we are seeing a return to the days of bidding wars on repossessions, with people throwing all common sense out of the window in order to secure a property.

 

We have encountered developers, who having sold the last of their completed housing stocks are now only selling off plan and building as and when a sale exchanges contracts and is legally binding.  Securing good deals on these houses is becoming increasingly difficult for the unwary and developers have come up with some ingenious ways to ensure they sell at the price they want.

 

A recent example of this is one of our current clients who had negotiated a deal with a developer on a new build, which they were happy to proceed with the deal and commissioned us to manage the purchase.  After 3 days we completely turned this deal on its head:

 

 

Confidence is rising and the number of buyers is increasing...

 

...but there are still deals to be done!