THE property market is not all gloom. Glimmers of light and hope are breaking through the misery. Two small, but significant, pieces of cheer came in this week’s Nationwide Building Society quartlety prices survey.
It found that although house prices in the North are falling, they are now slightly outperforming prices in the South for the first time since late 2005.
Also, property prices in Durham City are still on the up, despite this week’s reports that across the UK house prices dived at a record rate, losing 12.4% of their value. House prices in Durham City rose by 2%, making it the hottest performing city in the UK, with an average price of £157,613. The news was met with mixed reactions by local agents.
According to Peter Barkley, director of Bradley Hall estate agents which has an office in Durham City, the figures are a good reflection of the current market.
He said: “The Durham City market is resilient and demand is still strong. Although it’s a city, it’s nice and compact with quality retail and commercial businesses, all contained with green belt land.
“Location, location, location has never been so much at the fore. Good properties in a good location are always going to sell. We specialise in properties at the top end of the market, where buyers aren’t as affected by the credit crunch as others may be.
“Potters Bank and West House Avenue are particular hotspots of the city. Prices in the city centre are definitely holding their own, and we are selling as many homes as we were a year ago.”
However, regional manager for Reeds Rains Estate Agents, Paul Morgan, was puzzled by Nationwide’s findings: “I am really surprised by the figures as it’s an extremely tough market here at present. Any agent who says they are unaffected by the current market is wrong. The only houses selling are properties with price reductions or repossessions. Most people are sitting tight, which is sensible.
“Some properties are selling, but they have to be realistically priced. People still think they can get top whack for their houses which is just not the case. There are some bargains out there because some people have to move. Times are tough, but we will come through this. I think by the end of the first quarter of 2009, things may start picking up again. I can’t see prices dropping as far as some of the professionals are telling us.
“There are more people than there are houses. At the end of the day, house prices will rise due to supply and demand.”
Article
