Supplied by David C Cowburn, BSc (Hons) MRICS FAAV of Armitstead Barnett Estate Agents
Rudimentary economics state that any prices are primarily determined by the rise and/or fall of both supply and demand. The Housing market is the one of the UK population’s obsessions. Two relatively obvious statements.
At present, in the mid to high-range Lancashire housing market there are certainly not the number of buyers around that there were in 2007 however, there are more buyers than there are sensibly and professionally priced properties. These houses -“products” – are offered by willing sellers “suppliers” and at present there can often be multiple bidders. As this phenomenon has re-commenced after the price crash, buyers in the market have heard what is occurring and have begun to bid closer to the asking price, even beating it in rare cases.
This market is potentially quite a fragile one. Just how fragile remains to be seen. Supply and demand will of course be key in deciding the markets fate. As developers begin to re-commence construction, supply increases, and as interest rates creep higher demand could decrease, but hang on a minute economics are all well and good. This is the UK. What is our national obsession again?