10 Things that may or may not have changed during the Recession, when you buy and sell your home
- AuthorPaul Hajek
It is considered amongst the popular press that the housing market has changed beyond all recognition since the credit crunch began 2 years ago, and the slowdown then recession of the last 18 months.
Yet, the fundamentals of the Housing Market and how you buy and sell your home have changed very little.
1. What hasn’t changed is that the location of your property is vitally important.
2 How your home is presented for sale has never been more important.
Despite all reports to the contrary, the Housing Market still continued during the recession, albeit at vastly reduced numbers.
3. Price was paramount, and if your property did not offer value for money, it did not sell. If your property is still on the market 6 to 12 months later, quite franly it is over priced.
4. What has not changed is the importance of a good Estate Agent, who can not only ensure a sale but also at the best price possible
5. When there is over supply of flats, it is 10 times more difficult to sell a flat than a traditional family home
Yet, things do change as a result of a severe downturn in the Housing Market. It is as if there is a return to basics. All the froth of overzealous developers dissipates, and homes begin selling because of themselves not in spite of themselves.
6. The premium which normally attracted to new builds of an additional 10 to 15% has gone, and there is now no differentiation between new and second hand. Developers have forced to use all their marketing efforts to achieve sales with incentives such as mortgage payments for a limited time, paying Conveyancing fees and Stamp Duty, thus eroding their traditional margins. There is evidence however that the level of incentive is reducing as more people come on to the market.
7. Developers return to building more family homes. The chances of high rise high density flats becoming the norm again is a long way off.
8. Developers can no longer get away with room sizes which challenged the swinging cat. Rooms will become more proportional living spaces.
9. People will consider building their own homes under self build schemes, as their money will go farther than buying an already completed home.
10. More importantly, homes will be viewed as places to live rather to speculate upon. This will bring more order to the housing market, and lead to more modest price rises which in the long run benefits more people, than a boom and bust cycle.
However, in all this, the lessons of history will no doubt fade from memory and we will revisit all that was bad about the recent Housing Market conditions.
Some people are already fearful of the Housing Crash of 2027.