The 1.7% increase in property values reported in the UK for July would seem at first thought to be a very encouraging development on the road to a recovering industry.
With the increase in prices being widely documented all those first time buyers who have been keeping hold of their deposits will now be brought out into the market believing that this could be the best time to get the best price for a property for a considerable time. Up until now documents and figures have suggested that the housing market still had a fair way to drop but with this 1.7% increase over just one month many people are reviewing this decision.
One other group of people who may now be brought out into the market place are those who wish to move home but who have put off the decision. These people thought that their home would simply sit on the market and receive no interest or viewings, the possibilities of achieving a sale at all, let alone a Quick Property Sale very slight. Many in this situation decided simply to wait until the predicament was over.
So, on the face of it this increase seems to provide those people wanting to Sell Property Fast some optimism that their ambitions may be reached. More buyers will come to the market and things should start selling again.
However this increase in house prices may actually have a harmful affect on the market in the short term. Although first time buyer numbers will rise, each of these buyers still has to deal with the problem of the banks lending criteria. This clearly tightened up considerably in the aftermath of the economic crisis and has not improved much since. Therefore these buyers, although enthusiastic, may not actually be able to make the most of the opportunities.
Also current property owners are encouraged by the increase therefore the amount of extra homes coming on to the market increases greatly. All those people who have wanted to move house for the last year are now starting to think that the time is now right and the numbers of property on the market will increase significantly.
Obviously this rise in properties on the market combined with very strict lending criteria may see the balance between supply and demand become unbalanced again thus meaning that property values could fall again immediately. Possibly the only way out of this situation is if the property prices were to rise very conservatively so as not to create a knee jerk reaction in any quarter. That way the estate agents with directions to “Sell my Home fast” may find some way of delivering to their customers!
