Budget Comment

Ok, not the most riveting subject matter this week, but it’s relevant and merits discussion.
 
Well I say it’s relevant and then you look at the budget in relation to housing and have to question what the actual assistance to the market is? Personally I think it was almost negligible, however you may be surprised to know I’m not that concerned, in fact I’m not actually convinced the market needs stimulus presently. Before you question my sanity, hear me out...
 
At present there are a steady flow of decent quality buyers. These buyers have to have a decent sized deposit to get mortgages so, a) they have been disciplined enough to save, b) their finance is not jeopardised by small survey issues that affect high percentage borrowers, and c) they are less edgy because they aren’t risking every penny they have if prices dropped a little further.
 
The result is that of just four abortive transactions Imagine have had so far this year, only one was a buyer withdrawing. Our cancellation rate is down as a result and we have less of those horrible conversations with homeowners, explaining that their buyer has pulled out.
 
If mortgage finance was more readily available, the overall quality of buyers would go down, prices would shoot up too quickly, and boom and bust is back again. Maybe the current requirement of properly saving to buy is no bad thing.
 
For Imagine, there is a major benefit from the pool of buyers being less plentiful; we’re increasing our market share. The fewer buyers around mean the decent agents who service their clients and accompany viewings and build rapport are the ones making deals happen. Homeowners realise they need a genuinely proactive one and not just any agent. I’m much happier when there is a challenge to be the best; the stronger survive and my industry builds a better reputation. Just now the balance is pretty healthy.