I agree with Ashtondav to a point. I was trying to simplify the reasons (and indeed my argument) for a falling market although there are many and varied underlying factors which affect any property market. The macro economic background together with the micro climate all have an affect on the ability anddesire to purchase or move.
The main issue is that there are less buyers buying (for a variety of reasons) and therefore more properties available (with more being built).
This means that the market will (and has already) fall. End of story.
Until such time as there are less properties available (or more buyers buying) the market will struggle.
As I mentioned in my first post – this is completely localised – if you have a rare property in a popular location you still stand a very good chance of selling (and having to fight off competition is that is what you want to buy).
As with most things in life, it is best not to generalise because there are always examples of “bucking the market” however it is a difficult market and those looking to buy should ensure that they are paying the right price for their new property.
In response to Melosine’s post – quite often agents don’t set the price of a property, the vendor does. (IMHO this is quite wrong). It may be that those extortiantate prices are fixed by the vendors. (personally I wouldn’t take a property on that was so much higher than the market).
No doubt they will become more realistic in the future if they suddenly NEED to sell.
As for JVMills post – I totally agree. Buy because you want to live there. If it makes money in the future then so much the better. But don’t bank on it. Enjoy it for what it is – a home.