Published at 09:41, Friday, 29 January 2010

WERE there any gleams through the gloom of the property market in 2009? Looking back, some of our local agents are determined to highlight the bright side of a tough year.

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Some say house prices have risen, there have been fewer time-wasting non-buyers, and the shortage of new-build homes can only boost the market for “used” properties in the new year.

For others, prices are static on average, and they see no prospect of rises soon.

At Foster Maddison in Priestpopple, Hexham, Neil Foster said his own analysis showed positive data, including a “sizeable increase” in average house sale price, and buyers moving more speedily from viewing to making offers.

But he admitted that new buyer registrations fell by 22 per cent, and the number of houses available had levelled off rather than increased, while property viewings had gone up.

Interestingly, the agent found that the stock of properties sold (subject to contract) had increased by over 100 per cent.

Mr Foster said: “The number of new buyers fell, but this appears only to have removed speculative buyers from the market.

“The number of buyers not needing to sell in order to buy has increased considerably and the conversion rate between property viewing and submission of an offer is up by over 50 per cent on the previous year.”

He said these factors suggested a positive undercurrent in the market, with buyers unaffected by rumours of mortgage unavailability and fluctuating price indices, providing a stronger foundation for the market moving into 2010.

Foster Maddison – which draws its annual figures from offices in Newcastle and Lanchester as well as Hexham – also highlighted that the average house sale price it achieved increased to £338,000 in 2009, which is just over twice the national average and represented a rise of over 25 per cent from the previous year.

Mr Foster added: “I don’t believe this increase is reflective of a substantial rise in house prices, but it does support our view that good quality property remains in short supply and that discerning buyers remain committed.

“Unless there has been a dramatic turn around in the final quarter of 2009, the number of new home completions for the year is likely to be around 70 per cent below the Government’s own target and that shortfall is only likely to strengthen demand for residential property further in the year ahead.”

At Rook Matthews Sayer – which has offices in Hexham’s Fore Street and a network of 16 other offices throughout the region – Richard Sayer was also in the mood to see the cup as half full, not half empty.

“Unlike most of the country, last year prices did not rise in the North-East. We see little expectation of prices going up and similarly we see no pressure for prices to fall. But this is an excellent time for first-time buyers and investors to look hard at entering the market,” he said.

Published by http://www.hexhamcourant.co.uk