Here are 4 big reasons why we feel now is the best time to buy residential property since early 2019.
1. CHOICE - there is now a LOT more property available for sale across Cornwall (and the UK as a whole) in all price ranges and locations, so you should be able to find something to suit your wish list. If you can't find something you like now, you probably are looking for something that doesn't exist!
2. COMPETITION - Or specifically the fact there are now less buyers in the market. Between 2020 and 2022, there was very little available for sale and at the same time there was a huge spike in the numbers of buyers active in the market, leading to competitive bidding for the great majority of properties. It was a perfect storm for buyers and when we look back in years to come it will appear as a huge spike on the graph.
3. VALUE - Whilst the figures don't yet show in the Land Registry figures it seems pretty clear that actual sale prices are down between 10% and 20% from the heady peaks of 2021. You may think you should wait for prices to bottom out, but any experienced investor will tell you it is impossible to time the top or bottom of a market. So better to concentrate on value - and there is plenty out there now. Talking to manufacturers in various industries, it seems inflation has peaked and most of their input prices are down significantly in the last 6 months. This could mean that interest rates have peaked or might be close to turning - and real mortgage rates are already falling. The moment this happens more buyers will return to the market overnight and the opportunity to get better value will be lost as the demand+supply balance falls back in favour of sellers.
4. TIME - In the frenzied market of 2020 and 2021 buyers were under lots of pressure to make quick decisions so as not to lose a property to one of the many other interested parties. Now there is much less competition, so as a buyer you have (a little) more time to consider your purchase before committing to it.
So looking at the above, our founder believes this is a great window of opportunity for buyers. Or would you rather wait for the next upturn and compete with 5 other bidders and pay an inflated price? We thought not!
As legendary investor Warren Buffet said, "Be fearful when others are brave and brave when others are fearful".