It's not 100% a buyers' market for residential property, but close enough
59 days ago
As consumers battle to stay afloat after months of a hard lockdown, some home owners are asking banks to extend payment holidays or as a last resort, considering the sale of their properties.
At the same time interest rates have hit record lows, driving an apparent recovery in the residential property market.
What does the future hold for owners and prospective buyers?
On The Money Show, Bruce Whitfield interviews CEO of the Pam Golding Property Group, Andrew Golding.
He says a number of factors are driving the market after two months of virtually no transactions.
These naturally include pent-up demand and the historically low interest rates.
At the moment the market is very active, more or less in line with what I think most businesses were expecting pre-lockdown... It still remains to be seen what the balance of the year looks like.Andrew Golding, CEO - Pam Golding Property Group
A lot of sellers who were perhaps speculatively putting their properties on the market pre-Covid have certainly taken their properties off the market. We're seeing real sellers with an appetite to sell definitely, now present, and as a consequence of that I think it's a more authentic market than the one we have previously.Andrew Golding, CEO - Pam Golding Properties
Golding says it's not a straightforward case of a buyers' market across the board.
He agrees that in general, though, asking prices are becoming more realistic.
We're seeing some bargains in the top end of the market but then at the same time we're seeing some transactions taking place where sellers are getting full asking prices where a buyer is seeing value.Andrew Golding, CEO - Pam Golding Properties
We thought that there was going to be a significant general discount to asking price compared to realised price, but that just isn't the case across the board.Andrew Golding, CEO - Pam Golding Properties
But there's no doubt that at the bottom end of the market and entry level, where affordability is now significantly improved with the lower interest rates we are seeing new entrants coming into the market and choosing to effectively buy starter homes... where perhaps they would have rented in pre-Covid times.Andrew Golding, CEO - Pam Golding Properties
I think for the first time in many years it does feel like we are near that space or at that space [where rent and mortgage payment gap is narrowing]... certainly in terms of the comparison of what you're paying on a rental and what you can afford now on a mortgage.Andrew Golding, CEO - Pam Golding Properties
Listen to the conversation in the audio below:
This article first appeared on 702 : It's not 100% a buyers' market for residential property, but close enough