May Newsletter - Taking Inventory is Always a Good Idea!
Dear friends
Life has taught me that taking inventory is a healthy practice.
When we take stock we can make informed decisions about how to move forward, what our approach and strategy should be, and critically, where we really are right now.
Recently a clear pattern has emerged in the London housing market that makes it easy to provide you with a market summary - inventory is low, which means there is very little stock available.
This affects things in the following ways:
- With fewer properties on the market, prices start to go up. We may be seeing the first rise in London property prices since 2014.
- This is fuelled by pent up demand after buyers spent time hesitating during lockdown.
- Competition for best-in-class properties gets fiercer and premiums will be paid more frequently.
- Better prices are possible for regular properties and homes that have been on the market for a long time begin to attract offers.
- Sellers feel bullish and do not feel pressured to take the first offer. They can dictate terms.
So what does all this mean for my clients - the buyers?
In short, it is a sellers market and buyers therefore need to be highly attuned or they risk missing out. I am not sure how long this will last? Is it pent up demand that will run out of steam in a month or two or is this a longer term trend?
Buying in this climate can be frustrating, unless you have the right guidance. Without support, or at the very least a lot of hard work, it is likely buyers will never get to see the best properties out there. For international buyers, they are further hindered by travel restrictions and stamp duty increases. And many UK buyers are finding the only stock available is too central, as leafier suburbs and space are a priority due to WFH.
At Homes One we save our clients more than their fee in 95% of transactions. At a time like this, with a throng of buyers vying for a limited number of homes, the right advice and support for your buying journey can be crucial.
Elsewhere, here at Homes One we are beginning to feel that this time the light at the end of the tunnel is real! Covid-19 is not the only meta-trend coming to a close - inshallah! (God willing, as my friends in the middle east say.) Here are three reasons to think positive as we reach the final stages of Coronavirus, and restrictions begin to ease up:
1. The economy is already rebounding
After appropriate government responses worldwide, there were no catastrophic economic casualties during Covid-19, and most of the major markets are reporting strong performance in spite of the restricted conditions. Although it is unthinkable to write about these times without mentioning the difficulties for small businesses, certain sectors such as hospitality, and of course individuals and families hit by ill health, the economy is the surest vital sign we can measure, in terms of whether we are going to come out of the other side of a crisis in one piece. Whereas some industries are down by 30-50%, the financial sector only suffered a 3% contraction, which shores up the confidence of our whole societal system. We are in a financial world now, and many sectors, property among them, will benefit from such a strong fiscal performance in some of the most difficult conditions on record.
2. We could be in for a clear run, economically
Covid was the latest in a series of crises - and climate change notwithstanding, all the main culprits have reached some kind of resolution during lockdown. Since I started Homes One in 2007, we have weathered the financial crisis of 2008, the uncertainty caused by Brexit between 2015 and 2020, and then Covid which as we all know arrived in early 2020. These are three of the most destabilising events in history, and although we have built a strong business and my year April '20 - April '21 was excellent despite the difficulties, at no point in the past 15 years has there been a clear run in terms of economic stability. But now, with the financial crisis of 2008 a distant memory, Brexit done and dusted, and trillions pumped into the economy to shore the world up post-covid, it could be that we are, for want of a better expression, vaccinated against further volatility for the time being... I say again, inshallah!
3. The big breakthrough is in being human
Lastly, the post-coronavirus world looks like a better place to be. People everywhere have been forced to think systemically about the consequences of their actions, and consider their behavioural footprints for the first time. The resulting effect is that people are more compassionate, and it has become more acceptable to be human, to be flawed, and to question and inquire into things that don't feel right. Perfectionism is out and emotional honesty is in. The next normal will be all about authenticity over strategy, community over the individual and spirit over matter. That's not to say that matter, individuality and strategy will not get a look in, only that their more real counterparts will start to take precedence and authority, as social proof and word of mouth are further empowered by technology. People are making their buying decisions faster than ever, and they want to assess trust and likeability in seconds. To be ready, be real.
These brighter days have me looking forward to catching up with you when you are next in Kensington.
Keep going we are nearly there.
Warmly,
Karim