Market Comment

19th August 2010

John Stevenson, Director of the John German, based at its Lichfield office, advises vendors to be wary of reports they read that property prices are on the increase.

“In effect they are not,” he said. “One of the problems is that some agents are over-valuing properties. Also, what we are seeing is national reporting and in London and the Home Counties values are increasing because of foreign investment, particularly Chinese and Russian.

“However, for the rest of us this is not the case and, having read favourable reports, vendors are tending to take an unrealistic view. The Government is having to tackle major problems in the economy and the spending cuts they are making have begun to affect the property market.”

Mr Stevenson did not paint an entirely gloomy picture, however, adding: “We are continuing to sell properties for those vendors who are being realistic and there is movement in the market for them.

“I would advise all vendors not to be unrealistic – if they are they will go to the market and be ignored. Be realistic and you will move forward. In any event, those people moving upmarket will gain overall in this climate because more and more property will move within their financial reach. Those moving downwards will have to take it on the chin, or stay where they are.

“I envisage that the market is likely to remain as it is for between 12 and 24 months. The economy is getting better, as shown by the FTSE going up and the improvement in exchange rates, but there is still some hardship in front of us.”

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