This week Tom considers where power currently lies in the market. Is it a buyer’s or a seller’s market?
With mixed reviews in the news, London sellers are faced with offering huge discounts on their valuation and asking prices, while conversely Portsmouth has seen an excellent 7.1% growth in the market.
Fortunately, London is its own world. Or its own, autonomous, parallel property universe, which has no link with the rest of the country! Think of it like the Vatican City, it's geographically in Italy but not legislatively in Italy...
Right now it’s neither a buyer’s market nor a seller’s market. There is an average number of properties on the market and they are selling at an average pace so there’s not a saturation of properties for sale. A seller’s market refers to when there’s limited choice for buyers, whereas a buyer’s market is characterised by too much choice for a smaller number of buyers.
In 2016, we saw a seller’s market. In 2017 it was somewhere in between. Are we going to see a buyer’s market in 2018? I think we just might.