Recently we heard from our British connection, Mayfair International Realty in London, who serves as our marketing partner throughout the UK and Europe. Mirroring the sluggishness we are experiencing in many of our local markets, the international real estate market is facing some challenges as well.
Here's the inside story on the state of the UK real estate market from Nick Churton, President of Mayfair International.
In real estate it is both nicer and easier to give and receive messages of optimism and assurance. No one ever wants to hear from a pessimistic broker or agent. But then no one wants to hear from a stupid one either. Pessimism should never be confused with pragmatism or objectivity. It would be wrong not to prepare sellers and ensure that they are in the best possible position to make the very most of the market we are in. Property is sold by people with their feet on the ground, not by those with their heads in the clouds – or worse!
So realistic brokers and agents are putting the Champagne back on ice for little longer in the UK. For a while many people thought that a buoyant property market had returned. In many places prices had regained their pre-2007 levels and there was strong demand.
But it would be foolish to ignore the many signals we have. In the market, all is not quite so rosy as it was. Demand has slackened off; mortgage lending is at a six month low; harsh economic measures are ahead and, despite low interest rates and helpful noises from the IMF that the British economy is looking better, few are deceived into thinking that the next twelve months or so won’t be a challenge. Read More......