Anyone with any sort of insight into the property market at present, whether as a seller or a buyer, or simply as an interested spectator will be aware that the market is experiencing a cooling off period. However while it is our experience that the prices are being adjusted or corrected, there is no evidence of the crash which is being sensationalized and over-dramatically predicted in some quarters of the media at present.
Let's face it, this cooling off period was inevitable as the pattern of rises of 50% over 2 years was simply unsustainable. However, I am of the opinion that 2008 will bring a period of prolonged stability in the market. Owning ones own home, particularly in favourable locations, still represents a very sound, long term financial investment. Local firms of chartered surveyors like ourselves are spending a large part of our time at the moment convincing the public of this and trying to remove the element of doubt and fear which exists in peoples minds, particularly amongst first time buyers trying to get their feet on the property ladder. The simple message to everyone is to remain calm! The market is still strong as we go through this transition period, with sustainable growth similar to that of a year and a half ago.

A combination of factors have brought about the current situation. The increase in interest rates - the Bank of England must surely be encouraged to reduce the rate at the earliest opportunity - the Northern Rock crisis and the lending institutions changing lending criteria for developers, have all played their part while the over-reaction of the media has only added fuel to the fire. But it's not all doom and gloom! There are still many positives to take from the market at present - there's so much choice for purchasers because of the high stock of property available. This in turn creates more time and more scope for negotiation in terms of price, for prospective purchasers. Yes, it's a buyers market but that means there's never been a better time to buy a house.
On a local level, the economy is buzzing with major developments ongoing in both the residential and commercial sectors, which is going to keep unemployment levels down in the area. Tesco's are due to open their massive store on the Dublin Road next weekend and with Asda already open, works now underway for the construction of the new hospital and a leading high street chain store rumoured to be coming to Erneside shopping centre, the future looks bright. Henry Elvin, Head of Corporate and Property Banking with Ulster Bank, was quoted in last weeks Belfast Telegraph as saying that he anticipated price growth in Northern Ireland to be steady from next spring onwards, predicting around 7% to 8% growth and a return to normal market conditions.

For me, following the Christmas holiday period which is traditionally a quiet time of year anyway, 2008 will see a recovery of confidence, which will create a more buoyant market, allowing people to get on the move again.