Before we analyse the second quarter of this calendar year, we will briefly recap on the way 2011 started. We found that the first three months of the year were very busy with a high level of enquiries and agreed sales, whilst properties held their prices. Our experiences were supported by the official regional reports.
Following on from this strong start to the year, we did find that there was a slow start to quarter two, with fewer properties selling, as has been reported on a national level. We put this down to the unusually pleasant weather for half of April, the royal wedding and the increased number of bank holidays shortening the working week, not we believe a lack of confidence in the market.
We found prices did not falter unlike the national reports are claiming, this is probably because our location is slightly sheltered from shakes due to its popularity as explored in our previous report, http://www.burkmars.co.uk/news/lymington-is-in-the-top-five-for-most-desirable-uk-seaside-towns/.
As May drew to an end and June commenced the market started to improve again, our register of properties for sale has increased weekly and we have agreed a large number of sales upholding an achieved 96% of asking price. This demonstrates that, in Lymington and the New Forest the quantity of properties selling has increased because market interest is gaining strength rather than as the national press are saying because house prices are falling. Halifax are supporting our findings and even suggesting that on a national level house prices rose by 1.2% in June. We are also pleased to say that June 2011 has seen our register of buyers grow by approximately 8%.
We expect this market interest to remain positive for the rest of the year. In Lymington and the New Forest we are confident that prices will remain at current levels, the Nationwide House Price Index forecasts that “sideways still appears to the most likely trajectory for house prices for the remainder of the year”, as they see economic conditions improving as the year progresses. Whilst the Halifax House Price Index states “A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months”
Always a concern when purchasing a house are the mortgage repayments, particularly with all the media discussions of will they, wont they over the base rate increases. Hopefully to put a stop to these fear inducing discussions for a time, it is now widely believed that the base rate will remain at 0.5%, as an “imminent bank rise now appears unlikely” www.moneymarket.co.uk. Marvyn King, Governor of the Bank of England stated recently that “Bank rates will increase when the economy recovers”. Due to this mortgages, although not as readily available as they once were, are now on average the lowest they have been in over two decades. The record low mortgage rates provide a great opportunity for those looking to purchase a property to agree a good fixed or variable rate.
In summary we have seen the second quarter of 2011 starting slowly due to circumstances beyond the control of the housing industry but June has made up for this proving that the housing market is still very much active. We see the rest of the year continuing as the first six months have, house prices will remain very much the same. The quantity of properties coming on to the market and active buyers is expected to increase through the summer months and into the autumn. With the market proving to remain steady and mortgages the lowest they have been in years, we think now is a great time for those looking to move.