A new found confidence is bringing buyers back to the Worcestershire market with particular enthusiasm for country houses up to £1m. Above that threshold buyers still watch and wait for the more expensive houses where any small adjustment in the market can have a more telling effect on price.
Worcestershire is very much a home grown market, rather than driven by second home buyers, and what is now needed is a better supply of good quality houses to match growing buyer confidence. Bank mortgage lending policy also remains inconsistent, and this may stifle some of the recovery predicted for the spring of 2010.
Whilst an increase in the supply of houses in the mainstream market will help market activity, it is forecast that the market could end the year with prices falling up to a further 4%, on top of the 20% price falls so far. Above the £1m threshold the market is likely to remain less prone to price falls in 2010. City bonuses will again follow prime property with more dynamic price growth forecast from 2011.
Just as the weather brings us micro-climates, the mainstream market has its hotspots. In Worcestershire villages like Birlingham and Suckley continue to attract buyer interest in good times and in bad. Research also shows that homes close to the best performing state and private schools command prices 15% higher than the County average, and Worcestershire is particularly blessed in this respect. Worcester, Evesham and Malvern, and Cheltenham in the neighbouring county offer excellent state and private schools in all age ranges.
In poorer served parts of the county prices can be 10% below the average. In extreme cases house prices in the best served areas can be double those in the worst.
2010 is expected the lay the foundations for positive price growth returning in 2011, but much will depend on vendors expectations moving towards the market rather than the other way round. Otherwise the market may have further surprises in store.
For further information contact Anthony Mayell on 01905 459426 email anthony.mayell@fishergerman.co.uk
