The confusing and complex state of the market has never been more apparent, two recent independent property reports on house price movement showed entirely contrasting trends.  This suggests that the truth probably lies somewhere in between, indicating a static and difficult market  for all involved.  Properties must be attractively priced to sell and even the slightest flaw can put a buyer off.  Purchasers have become more discerning in their demands and are reluctant to reach out of their financial comfort zone in the wake of the struggling economy which disappointingly shows no sign of recovering in the near future.

Job insecurity and the unavailability of mortgages continue to suppress any sustainable recovery and despite the stamp duty holiday for first time buyers up to £250,000, gathering a deposit together remains out of reach for many.

The traditional spring market look set to be delayed until after May 6th, but there is still the possibility of a “double dip”, so don’t expect prices to go up any time soon.

There is still considerable uncertainty over the economy and the increasing probability of a “double dip” once the general election is over.  Inflation is also rising and this will impact on mortgage holders who have benefitted from cheap affordable rates, if interest rates start increasing.

Property values are likely to remain relatively static for 2010 as any increase in stock levels will be countered by the easing of mortgage restrictions bringing more buyers into the market.  Asking prices also have to be realistic as buyers are increasingly more discerning and unwilling to pay any more than what they feel the property is actually worth.  Any sustained growth is likely to be a little way off yet.

There remains a dearth of property in the £600,000 – £1million sector leaving many able buyers frustrated at their lack of ability to secure a new home and increasingly vendors are choosing to market their properties quietly to specific buyers.

Speculation regarding the election will influence many decisions on whether to buy or sell property and individuals may hold off acting until the outcome is determined, possibly into the summer.

2010 may well be the year of realisation of the true apocalyptic nature of the property crash. Values are being held up by lack of stock with the true underlying level being much lower than is perceived, any kind of sustained recovery is a long way off yet.

Much of the activity in the market is due to properties changing hands between estate agents, rather than through sales and purchases, although there has been a flurry of transactions at the lower and middle level where large deposits were available.

Until particulars of sale are produced there is no legal requirement for a HIP to be created as technically the property is not being marketed. This means that there are a growing number of properties that are “for sale” which are not on the open market and of which the general public are unaware. Using a buying agent has the advantage of gaining access to these properties early on and stealing march on unrepresented parties who must wait until the official launch several months hence, unless the vendor has already achieved a sale.

Whilst in general property prices may have stabilised across the UK, recent evidence has shown that the East Midlands has performed very poorly in comparison, with prices 1.6% below those of November 2008 and no sign of an imminent recovery. Couple this with the fact that prices are being propped up by a lack of stock means that the true underlying value is much lower and an adjustment is inevitable. Vendors need to be realistic regarding their asking prices and be willing to consider offers below their expectations.

The “grey market” is expanding with more owners choosing to sell quietly and until the result of the election is known next year uncertainty will remain the norm.

Many also regard the looming general election as cause for uncertainty, yet one thing is for sure: Gordon Brown will not go down without a fight and there are bound to be some short term measures introduced that will stimulate the market in an attempt to win back some of the hoards of disillusioned voters. Enjoy what is on offer with a very large pinch of salt.

Landlords are seeing a return to the good times once again as rental stock falls (as property sales increase) and rental levels hold up. Now would be a good time to invest in a buy to let, with interest rates being so low and very a poor return on investments on offer from the banks.

There is still a shortage of good quality stock on the market to buy and there is an increase of property being marketed quietly. Vendors do not want to air their private business in public and property is a topic on which everyone has an opinion. A for sale board will always generate interest and speculation on the reasons behind the sale, the choice of agent to market the property and the price it is offered at. More vendors are choosing to be discreet in their disposals and want to disclose their intentions only to serious buyers. It can therefore be difficult for a buyer to get access to these properties unless they can prove their intentions are honourable and purposeful. Using a buying agent is a valuable asset in this situation as it proves that the buyer is serious, qualified and determined to succeed in a purchase.

With a lack of supply comes an increase in demand and it is not uncommon for several parties to be competing for a single property. Using a buying agent gives a purchaser a significant advantage in this situation. The vendor knows that the buyer is serious, informed and qualified and against a rival bid that is unsecured it puts the offer in a different league. Buying property is all about confidence both of the buyer and seller and by reducing the number of unknowns in the process, it makes for a happy partnership.

Whilst it is indeed true that buyers have become most discerning of late in their property wish list, it is also true that if more owners of desirable properties were to come to the market there would, in all likelihood, be an avalanche of interest generated and a selling price achieved that is far from rock bottom. Cash rich individuals need to optimise their investments and for others, life choices must be made recession or no recession. Accurate pricing is the key to success, there is only one opportunity to launch a property onto the market so it is imperative to get this right and not be flattered by inflated valuations.

An issue in particular which demands attention is unclear signage. If a property is for sale then it must be accurately identified. Sign boards arbitrarily situated in hedges or arrows pointing vaguely up a track do not make for a good impression on prospective buyers. If they can’t see what is for sale then they won’t bother to make further investigations and a potential sale may be lost before it has begun.

Properties that are accurately priced are selling and it is mainly old stock that is still hanging around, where vendors have been unwilling to lower their asking prices to a more realistic level. Buyers have become far more discerning of late and are unwilling to part with their cash unless they feel the property is absolutely right for them and at a level they feel comfortable with. In these tough economic times buyers are far less likely to stretch out of their comfort zone to purchase a property as they don’t want to leave themselves unnecessarily exposed.

Stock levels are also improving across the board but demand is still outstripping supply and could be responsible for propping values up and until mortgage lenders ease borrowing, demand will stay restrained. The fall in competition within the mortgage market has also served to slow down the application process which can frustrate the speed of the conveyancing process.

It remains a buyers market but don’t expect huge discounts, unless the property is inaccurately priced and in knowing that lies the key.

Activity in the market has definitely picked up with estate agents reporting an increase in the number of enquiries for the seventh consecutive month and a rise of more than 1% in the average numbers of properties sold over the last 3 months.  This is partially due to investors coming back into the market  but also real transactions between owner occupiers.  Mortgage rates available for 10 year fixed period are also on the rise indicating there is a feeling among lenders that the market is showing signs of recovery.  This is very positive news, however it must be looked at against what is really happening in the market as a whole.  There is currently a shortage of good quality stock which is holding up property values and helping prices to stabilise, however the sustainability of this recovery depends on the more global factors such as the availability or mortgages to first time buyers and unemployment figures.  There is no doubt the market is bottoming out although it may be more accurate to suggest we are bouncing along the bottom which has its own peaks and troughs.  Don’t believe the media hype that house prices are beginning to rise.

The property market is also rather confusing at the moment with values all over the place and it can be very difficult to determine the true value of a property with so much conflicting evidence around.  It is more important than ever before to take advice from a professional and carry out considerable research before finally making an offer.

There are also hot spots of activity due to a shortage of stock particularly toward to upper end of the market, where purchasers are falling over themselves to secure a particular property and offering over the asking price to achieve that end.  Potential vendors ought to be aware of this and feel able to come to the market now at a realistic price to take advantage of the pent up demand that awaits them.

It is a commonly held belief that a fall in property values affects other people’s homes but not your own.  This is of course a fallacy, however do not forget that if you are selling at 30% below peak there is a strong chance that you can also buy at 30% below peak.  There are no losers, so it is irrelevant if you sold for less than your neighbour you probably bought for less than him as well.