We are now likely to see the market operating in a series of pulses and blips for the foreseeable future.

The activity that has been so widely reported by agents and commentators over the last few weeks has been enabled by a handful of ready and willing buyers and sellers.

Some vendors have appreciated that if they want to sell their property they should listen to their agent and reduce price to a level that will be realistic, attractive and affordable to prospective buyers.

# And some buyers have decided to get into the market for a number of reasons:

# they have been forced out of the market over the last few years by ‘bubbly’ prices.

# they have not wanted to get into the market over the last few years because they, correctly, feared a crash.

# they have been able to raise finances, taking advantage of historically low interest rates.

# they are cash buyers.

But those realistic vendors and buyers have now met their matches, and the market will falter until more vendors decide to offer their properties for sale – there is still real shortage – and more buyers pluck up the courage and organise their financing to make the most of opportunities available.

The market will be characterised by bursts of activity, followed by nothing happening – and that could go on all year.
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There has been alot of talk recently about how the market is improving, is picking up, how 2009 is going to be just like normal.  I am afraid alot of that is just plain wishful thinking.

Yes, there is more activity than some agents were expecting – but some agents had gotten so used to zero transactions that a few properties being bought and sold feels like boom time.

I will stress again that the most positive aspect of the correction to date, perversely, has been how speedily house prices have fallen – really plummeted, fallen off a cliff, overnight (in the relative terms of the property market).  Many have seen this and are negotiationg hard on the limited stock that is currently available.

So, at last, we have some kind of a market.

But I am afraid not even a few swallows make a summer.  There won’t be a nice, easy-to see bottoming out.  In fact, there won’t be any regular pattern at all.  In the short to medium term the market will look more stable – but wrinkled and bumpy.

We will see flarings in the market as sellers price appropriately, and frustrated buyers find what they are looking for – and then it will go quiet again.

My advice has remained the same for 6 months.  If you want to sell, speak to your agent and get onto the market.  And if you want to buy, take advice and get into the market.