Without house price stability, people cannot move, at times when they ordinarily would. We can see this clearly at present owing to market stagnation.
Worse, all the allied trades, including estate agents, are unable to trade successfully as the housing market goes into the doldrums, at approximately 7 year intervals.
The idea of owning your own home (rather then just renting it) is partly so that YOU can decide when you want to move, and where to. It’s also to enjoy a return on your investment, over time.
I am concerned about helping large numbers of people, by creating a perfectly stable housing market that stays ‘stable in throughput’, no matter what the rest of the economy is doing over time. This has never been achieved before but at Property Match (UK) we have discovered the correct formula to achieve this.
In essence, the estate agents past model, which is fatally flawed, has been to try and create a price stable market, with generally increasing asking prices.
The result, which we can all see, is massive house price growth followed by stagnation in demand as prices fall back.
By comparison, our idea is instead to have a market that is primarily stable in throughput and that asking prices should reflect that. This would mean that people could move between houses more easily, whatever the prevailing prices, because prices are, of course, always relative at any one point in time. Instead of using agent’s psyched-up prices, true market-driven prices, can generate a continually moving housing market and thus ability to change between houses quickly, in any state of the market.
In this model, asking prices would be capable of better self-correction than happens at present but because all the asking prices would stay close to each other, relatively speaking, (like the Red Arrows flying in formation,) everything will work satisfactorily. Forward progress will be maintained at all times!
Additional advantages will become available, especially for first time buyers, as whenever prices are generally lower than usual, they will be able to get onto the housing ladder more easily.
For more information about this exciting new method to smooth the housing market, please read our earlier posts explaining the various aspects of this market-price model, for an all new private housing market in the UK.
More on how we think a turn-around in the housing market may be quickly achieved:
CAP (Correct Asking Price) - by Property Match (UK).
Posted by: Property Match (UK): The modern way to market houses