Does the property press always paint an accurate picture?
On a daily basis we see a plethora of property based headlines. Some positive, but more often than not the article is predicting some cataclysmic event. As I write this piece at the start of 2023 the papers and news websites are predominantly commentating on the impending doom which is soon going to be on top of us and the property market. Today, The Telegraph’s property headline, ‘Property Chains Fall Apart as Market Slumps,’ paints the familiar picture but even though there is data to back this up, is this the only side to the story?
In my opinion this is a very pessimistic view and if one looks at the raw data a different slant can be taken. I took a look at Twenty EA Data and their comparable figures from week two of each of the previous seven years. From their stats it is evident that the National New Instruction Average Listing Price is up from £385k in 2022 to £420k in 2023 which has continued the upward trend. Furthermore, the number of sales fallen through is at its lowest point since 2021. These numbers do suggest that the data isn’t all bad out there but I do believe that the market has slowed.
The dramatic cliff fall, in my opinion, is not upon us and within our brokerage we remain very busy, but I believe investing in 2023 should be done with caution. There will be more opportunities out there due to less capital being available in the market but planning an exit is paramount to any investment’s success. This will be magnified in this market and I would recommend ensuring that a sustainable model is followed going forward.