A Slow and Steady Recovery
A Slow and Steady Recovery?
There have been many surveys and statistics published during the past 12 months and each one tells a slightly different story – different percentages, different growth rates over time and the like. The market does seem to be improving although there are regional and financial variations.
Pre ‘crash’ (the last one) the property market in Northern Ireland was very predictable ‘slow and steady’ being the established norm. This market was better for all concerned as sellers knew broadly what they could expect to sell for and purchasers know what budget to set aside. Enter huge salary multipliers, self-certification, sub-prime lending, the banking crisis and the rest is history.
Nowhere was immune and Northern Ireland was affected as much as anywhere else. The result was that prices fell to between 50%-60% of their high point value at the bottom of the graph. That trend now seems to be reversing and a ‘return to normal’ being forecast.
However, the market is far from fully recovered, and there are still many who carry negative equity which will for some be hard to shake off. Mortgages are being promoted widely and they are available for those who have a blemish free record!
Inward investment, new jobs and reduction in Corporation Tax are no doubt factors which will speed the recovery here but this will be diluted (short-term) by the enforced and voluntary redundancies in other businesses and in the Civil Service particularly.
But all is not ‘doom and gloom’ – the huge numbers of visitors coming to NI is very encouraging as they bring their Euros, Dollars or Drachmas with them! Money coming in for hotels, taxis, car hire, restaurants, shops and places of interest all help assist the economy generally. This in turn helps the property market, as families strive to improve their living space.
In summary, the market is perking up. Though beware of moving home without good advice. Overdoing your asking price will quickly be recognised as savvy purchasers realise what represents value and what does not.
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