Annual Market Review 2011

January 2012

By John Kelly, Managing Partner

In compiling my 2011 annual report for some strange reason my mind was taken back to the forecast for the year made in 2010. At that time the forecasts were for a dismal performance with the potential for dramatic falls in property values.... sound familiar?

The reality for Corum has been an increase in our volume sales and asset prices have continued to fluctuate somewhat but have been broadly stable for the second half of the year.

Indeed our increased sales volumes have shown a fairly broad consistency for some time now, with indications as we approached year-end that in some instances we are starting to experience an increase in demand levels corresponding with a slight decline in availability.

As with any market it is simply impossible to provide sweeping generalisations and this is widely evidenced in variances from one geographic area to another and in particular from one property type to another as you will read from our branch reports.

In general and in keeping with previous reports we continue to witness a high level of demand for good quality traditional family homes in high amenity areas where unsurprisingly schooling is largely the major concern and influencing factor with purchasers.

In these instances there have been a number of highly competitive closing dates in the established suburban markets resulting in premium prices being paid but in general a broad and consistently strong value retention year on year.

The marginal variations and deteriorations in such property styles have helped the vendors retain strong equity which in turn has enabled them to secure extremely competitively priced mortgage products for their next move.

Unsurprisingly those who have been in their current home for 10 years or more are experiencing the very real and material benefits of a more affordable transition to an aspirational property further up the food chain.


Other noticeable trends include a definite increase in demand for new build or contemporary homes which are a more ecologically sound proposition with noteworthy benefits in terms of economy, ease of maintenance together with enhanced security and generally lower running costs.


The market demographic now being positively influenced by many who have taken temporary ?shelter? and adopted a ?holding? position in the rental section; the emerging, relative stability in house prices coupled with continued low interest rates seem to beginning to facilitate a migration back to purchasing, reaffirming the nations commitment and preference to home ownership.


Now as we look ahead to 2012 against the continuing backdrop of economic gloom and general media negativity, we remain cautiously optimistic that the fundamental driving principles behind home ownership and its sound fiscal implications in the medium to long-term will continue to drive demand for home ownership albeit at a subdued volume of trading short- term, pending progressive material improvement in the medium to long-term.


In many ways the property market now reminds me of the weather in the West Coast of Scotland; we largely know what to expect even though we can effectively get four seasons in one day however despite the general perception that it will be cold, wet and windy, I believe we get far more bright sunny days than most people would believe.