Markets are always changing. I was once told by a very successful and experienced investor that all markets are actually driven by sentiment (as opposed to fundamentals), which drives prices up or down, as it strengthens or weakens and greed changes to fear. So what is happening 'at the coal face' of the prime Cornish property market right now - and crucially what could that mean for both sellers and buyers?
Sellers first, and it's about time. There is still demand in fact, but the skewed urgency shown by buyers during 2020 and 2021 has now largely evaporated as overseas travel has opened up. Sure, there are still plenty of buyers out there looking, but they are no longer desperate to buy yesterday and want to make sure they find the right property, especially as they are often buying for the long term. There are still plenty of cash buyers too, and perhaps the silver lining for sellers of prime property is that good old 'bricks and mortar' is seen as quite a safe place to park some cash, should you be fortunate to have some. After all only up to £80,000 is protected in a UK bank account, and the financial markets don't look all that inviting at present either, so if one has amassed some cash, then some prime property is as good place as any for it. You can use it after all, and they don't make it (land) any more! So while it might be a bit trickier if you need to sell a volume property quickly, if you are selling a unique prime property, the good news is there are still some very good cash buyers out there. Also prices are holding, but be prepared for it to take much longer to sell, much like it did before the crazed pandemic times really. There might not be ten buyers for your property anymore, but after all that is nine more than you need isn't it?!
So what about buyers? Well it's also about time! Last year, many properties were selling in a matter of hours or days and competition between buyers was often fierce. You now have more time to make your decision (and surely that's much better?), but don't for one minute begin to think you are the only buyer out there, or that there will be a lot more choice coming along anytime soon. Whilst I have learned not try to make any market predictions, what I can say is that over the course of my 30 years as an estate agent in Cornwall (yes, I know!) I have only seen the 'forced' sale of just one or two unique prime properties over that period. The reason for this is simple - these prime properties on the water and in the country are not only unique but largely bought with cash and so are little affected by rising rates and periods of financial stress. Most of the properties my team and I are fortunate enough to sell are held in the same ownership for some 20-40 years and so their owners tend to take a long term view. The fact they come to the market so infrequently helps keep supply low and sellers are prepared to put off selling for a few years if necessary. So as a buyer, in most cases you have a little more time to look and make your decision (and might not need to compete against several other keen buyers), but waiting for 'fire sales', lots more choice or crashing prices might be futile.