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The residential property market in Herefordshire looks to be continuing up to the Christmas holiday period as demand continues to be good against a steady stream of supply.
 
The year as a whole has seen a good increase in property prices with particular movement in the £100,000 through to £250,000 price range.
 
The market has slowed slightly from £250,000 through to £400,000 due largely to purchasers being cautious and the fact that 3% Stamp Duty is applicable over £250,000 on any purchase.
 
There have been instances where certain properties in the £300,000 plus bracket have met with tremendous interest due to their individual features, ie land, location, additional accommodation such as granny annexe or scope for modernisation and extensions.
 
With mortgage finance still readily available for purchasers, and despite an increase in interest rates, the first time buyers have continued to fuel the market along with the investors purchasing the cheaper property for "buy to rent".  This then in turn leads to chain sales being created and the spiral of sales then begins.
 
Hereford could see some good new development schemes hit the market during the latter part of 2007 as there are various pieces of important development land currently on the market with residential planning consent, in particular the old Whitecross High School, Baggallay Street, and a site in Southbank Road, Hereford.

Other sites which could also attract residential development subject to planning consent include the former Redcap School in Breinton Road and the agricultural land at Holmer which Crest Homes Residential have an option on for 300  houses, subject to planning.

If this scheme is passed it will provide a huge injection of quality homes into the marketplace in 2007 and demand will then create a good supply of second-hand properties which should give the Hereford property market a good platform for the latter part of the year.
 
Traditionally, the market does tail off in November but we have seen good sales recorded and this could go into the period leading up to Christmas and the New Year.
 
The property forecast for 2007 could be led by the weather forecast for the winter! - as if we were to have a mild winter this would certainly get the property market off to a good start. 
 
In the event of snow this really does curtail the market as purchasers certainly are not keen on viewing properties in adverse weather conditions and this will certainly determine the January market conditions.
 
Auctions have been particularly successful this Autumn with a number of properties selling well above the reserve or expected forecast price.  Auctions are particularly aimed at property where demand is high and supply is short hence the need to offer the property "under the hammer" or by tender.

The advantage of an auction is that on the fall of the auctioneer's hammer the purchaser and vendor sign contracts and the purchaser pays to the vendor's solicitors a 10% deposit and the sale is secure for both parties.  This has seen an uplift this last year and could be a way forward in the New Year if the "supply and demand" continues in certain sections of the market.
 
Overall, I feel the market will continue to be buoyant in the early part of the year, then become governed by the outcoming saga of Home Information Packs (HIPs) which are due to be implemented in June 2007 - but that's another story so watch this space in Spring '07.
 
Andrew Morris
ANDREW MORRIS & CO
ESTATE AGENT & AUCTIONEER
BRIDGE STREET
HEREFORD