Simon Taylor, a self-employed agent that is part of the exp network, has released a new podcast reflecting on the latest state of the market and why he believes increasing interest rates and inflation “could aid the average estate agent”.
He acknowledges that never ending property price increases is unhealthy for the market, and like most agents, he is far more interested in seeing the supply of housing stock increase, and sees growth in interest rates and inflation as key to helping that happen.
He said: “Agents grumble about a lack of stock with exasperated fiercely competing for what little does come to the market.
“The market has become “gummed up” – it just isn’t functioning normally.
“According to Twenty Ci – the data research company, the number of homes for sale is at a 15-year low. But will rising interest rates and household inflation provoke some homeowners to make big decisions? If so, estate agents could benefit.”
You can listen to the podcast by clicking here.
Comments (1)
Low interest rates inflate asset prices, higher interest rates deflate asset prices. Property prices have been inflated well above trend by low interest rates and the artificial stimulus of stamp duty. The log jam caused by incomplete chains won’t be helped by rising interest rates. It’s hard to see how anything other than time is going to bring the market back to the sort of normality most of us understand.
The MIRAS winter triggered by a 3 or 4 month stimulation of the market took till 94 to work through and that was without build to rent and a general interest in the letting sector that is currently restricting properties coming to the market in the sort of volume to satisfy demand.