2009 Housing market

Prospective purchasers register at a greater rate

A leading national surveyor says there is cause to be optimistic about the housing market as we enter 2009. Tyser Greenwood Surveyors say, while 2008 was clearly a year many in the property industry wish to forget, there are some indicators that there is cause for some optimism in 2009.

Roger Russ, operations director for Tyser Greenwood Surveyors, said, “It is difficult to make a projection for the housing market during this year with any certainty, but the feedback from many estate agents is that there was a marked increase in activity towards the end of 2008 and early 2009, with prospective purchasers registering at a greater rate.

“There appears to be a general perception amongst potential buyers that we are at or near to the bottom of the drastic fall in prices. Vendors still have to be realistic on price, with purchasers not under pressure to agree deals quickly if prices are not increasing, but as people plan for 2009, many will feel that it is a good time to buy.”

Mortgage lenders, while still adopting a prudent approach in the wake of the sub-prime market problems in 2007 and 2008, are releasing new competitive products. While there is still some way to go to assist prospective purchasers with higher loan-to-value products, the recent reductions in base rate will ease the affordability issues that helped depress prices in 2008. However, the underlying London Interbank Borrowed Rate (Libor) rate still remains key to satisfying mortgage demand and stimulating the housing market.

Mr Russ, said, “The effects of government intervention in the mortgage market were not fully realised in 2008. However, with the Special Liquidity and Credit Guarantee Schemes now in place, and direct government involvement with mortgage lenders, then the impact will likely lead to greater access to funds for the lending institutions, and thereby to the consumer.

“While the rise in unemployment figures and house repossessions casts a shadow over the economy, the necessity for some home owners to down-size will bring property onto the market which will generate interest, and act as a stimulus for greater activity.

“We are not out of the woods by any means, and this will not likely be a bumper year for anyone in the housing industry, but there is just cause for optimism of a market recovery as 2009 unfolds.”