It’s April 2022 and there are early signs that the buoyant residential property market starting to change. It’s not overly obvious yet and unless you’re imbedded in the property market you might not see that changes but there are changes.
We have started to pick up the occasional off plan new build block or conversion direct from the developer when over the past couple of years these developers have gone straight to the open market with their product but there’s some slowing and they need security and an exit. This is where we can help. We can potentially nail down an exit and legally secure this for a developer before they even go on site.
Some house builders are seeing their footfall decline and are outsourcing their new homes sales operations to specialist companies rather than keeping it inhouse.
Some estate agents are reporting that if a house doesn’t sell in the opening stages when it is new to the market it can then linger for weeks and months. This is in contrast to last year.
Some landlords are understanding that it’s a sellers market but for how long so they are selling now.
The housing shortage still exists and demand is unquestionable but affordability is the issue with prices, build costs and land values. The market will undoubtedly soften but to what severity? It’s hard to judge but there are national and global forces that are putting a growing market under pressure.
On a selfish level a softening of the market will bring us more opportunities and we need more opportunities to feed the demand from many of our investment fund clients.