Welcome to this issue of the Kilwinning Property News from RE/MAX Property Solutions. We look forward to bringing you regular updates on how the property market in your local area is doing. If you have any suggestions or items you would like us to include in your newsletter please feel free to contact us.

WHAT'S HAPPENING IN THE MARKET JUST NOW?

The idea that Scotland is proving somehow immune from the crisis elsewhere is a myth. Because people think carefully before deciding to move, house prices adjust slowly. A more accurate barometer of market conditions is transaction volume because, in a downturn, those who do not have to buy will stay put to see if prices will fall further.

The bad news for Scotland is that, in the last year, the number of homes sold here declined by more than 16%. This may be only around half of the UK fall, because houses in Scotland are still comparatively affordable, but nobody should feel complacent.

Privately, lenders and chartered surveyors now admit that some house prices in Scotland are already falling, though the market is patchy. Ayrshire is among the worst-hit areas, while Edinburgh and oil-fuelled Aberdeen are proving the most resilient. Glasgow is "flat", a description that hides healthy turnover and buoyant prices in the leafier parts of the city, while a rash of fixed-price offers at the lower end of the market tells its own story. (The Herald 6th October)

Despite the perception that nothing is moving in our market, there are currently 23 properties “under offer” in KA13 from 224 on rightmove.co.uk; just over 10% of available stock.

Benefits of slow selling market?

One consequence of the banks’ reluctance to lend and the resulting slowdown in sales is many more families are forced to the rental option. However, that same reluctance to lend has hampered the buy to let investors, which, coupled with a low level of social housing availability has resulted in a shortage of quality rental properties available. Subsequently, rental prices have risen over the last year or so. The average rental is now £516 pcm and the average time on the market – a mere 24 days.
(stats from home.co.uk 6th October)

MORTGAGE INFO - Property and the cost of buying your next home is never very far from many conversations these days. It has been predicted that base rates will stay at this rate until June of next year. However in reality it’s anyone’s guess. The important thing is not to allow this unpredictability of interest rates stop us from moving home or buying our first home. There has never been a more important time to make sure that you get the best advice to suit your specific borrowing needs when looking to finance your next move. it doesn’t mean there isn’t money to available to “ be got"... Here are a few tips:

Seek the advice from a Mortgage Broker who is “whole of market” which means they can search with the majority of lenders to find the right mortgage for you. Banks/Building Society’s are “tied” to their own products therefore cannot prove you with impartial advice.

Choose a Mortgage Broker you trust & like as you want to form lasting business relationship so that shouldn’t need to go anywhere else in the future.

A good Mortgage Broker will help you to understand your needs and find the best solution that suits you they will be honest, trustworthy, fully qualified & independent.

Buying your next home doesn’t need to be a “maze of dead ends” just seek the advice of a professionals and you will come out the other end unscathed!

Angela Fisk    Fisk Mortgage Services    www.fiskmortgageservices.co.uk    Tel: 01560 484100 or 07962711956

WHY ARE THERE SO MANY HOUSES ON THE MARKET?

While it's true that the Banks are far more reluctant to lend mortgages than 3 years ago and are demanding at least a 10% deposit for first time buyers, there are a few other factors which effect the market.

* Estate Agents – Reluctance of agents to tell sellers the full effect that the downturn in the market has had on the value of their home.

Despite reports of sold house prices reductions being at least 13% lower on Average in Scotland* since the height of the market in late 2007/early 2008 the asking prices in KA13 have not reduced accordingly (see opposite). Result; fewer sales than expected.

* Unmotivated Sellers – Some vendors may not be willing or able to accept 2010 prices for their property. Neighbours see their asking price is high and so expectation is raised for their own sale.

If your neighbour’s house has been on the market more than a year and has not had regular price reviews with their agent or are unwilling to reduce, then their property will not sell. Such properties would probably best be removed from the market.

* Large Deposits – With the banks demanding at least 10% deposit upon a purchase and 25% for investors (Buy To Let), a shortage of housing has resulted. There are too few rental properties in the market.

If your property is realistically priced, although sales times are longer in 2010, there is more chance you will attract the viewers/buyers and ultimately get your sold sign up!
*source GSPC website Sept 2010