2011 Outlook - Cornish Homes for Sale

As we approach the end of the year 2010, we can look back and see that it has proved to be very much a ‘mixed’ year in sales. Stamp duty changes affected the market with the £175,000 threshold helping sales earlier, although the reversion to £125,000 has seen some house prices decline throughout the latter part of the year. There has been a general increase in the number of properties available for sale from August to October, which has led to pressure and competition in pricing.

At Percy Williams we have had a steady year.  Our Gweal Pawl properties initially benefitted from the stamp duty changes, although following the reversion to £125,000 we were left trying to tempt buyers with developer incentives. At Fairglen, the £250,000 mark was a barrier which put off some potential buyers unaware of the real value of space offered; however we are pleased to announce that all Phase One homes are now sold and occupied.

Future Cornish Homes

Interest rates are likely to remain low, and mortgages are likely to remain affordable in 2011. Studies have shown that the average monthly mortgage payments in 2010 are nearly half of the level of 2007, although the requirement for 20% deposits for first time buyers is still proving problematic.

Phase 2 of Fairglen is now in negotiation with planners, but we are aiming to construct 3 bedroomed homes just below the £250,000 ‘barrier’. We are confident that the market will be showing signs of recovering from the ‘double dip’ before the time of the first completions. Certainly by Spring 2012, when the bulk of the completions are expected, there should be a very different market.

During 2011 the final phase (3) at Gweal Pawl will be prepared for 8 imaginative semi detached houses with bases being constructed ready for a likely start in 2012.

Eco homes

The outlook for 2011 seems at this stage to be broadly ‘more of the same’ though the spring budget may perhaps bring the odd pleasant surprise, particularly on further green incentives which might stimulate this segment of the market. Certainly at this point we do not share long term doom and gloom predictions and consider low interest rates will remain a relevant factor as will the relevance of buying a sustainable new home.