Buying or selling? How healthy is Okehampton's property market?

Hardly a day goes by without a report of fluctuations in house prices, with hugely-varying statistics showing a market rising locally (Western Morning News July 29th '09) or, nationally, more often falling.

So how's Okehampton and district faring - especially in the light of all the new building either recently-completed or in progress?

There's continued controversy over the number of new homes in the town, and when the Broadlands development, off Exeter Road, was nearing completion and recession struck, people speculated on the viability of the site. So what happened?

I spoke to Mary Wheeler of Bellway Homes, and she told me that far from doom and gloom, the development has proved a success and only a few house remained, varying from three bedrooms at £157,950 to the more luxurious 4-bedroom designs at £290,000.

She said, "With such a volatile market, we did experience a dip in sales immediately after the banking crisis, but since then things have picked up. Many people are moving from up country where prices - even now - are much higher, so they find real value for money here, especially if they are involved in part-exchange. "

Bellway share the development with Barrat Homes.

But what about 'used' homes, as the developers like to call them?

Adam Cook, a Director of estate agents Mansbridge & Balment, gave me his picture of the underlying trends. He told me, "The very top of the market was in September 2007, just before the collapse of the banks, and it fell steadily until June 2009, losing around 15%. By June this year around half that loss had been regained."

He went on to express the view that many of the fluctuations in the market were media-driven, either raising or dashing the hopes of both buyers and sellers without any particular reference to actual market conditions. He also emphasised the contrast between town and village.

"Good rural properties will always be in demand," he said. "For example, Hatherleigh continues to be popular, with houses moving quickly, but in Okehampton it's a very different story. Prices are much nearer the 2009 low."

Over the road at Miller & Son, Sales Consultant Malcolm agreed, comparing villages such as Exbourne and Belstone with 'honey pots' in Cornwall, where prices could be as much as 20% higher than the norm for the area. He said that a particular problem currently was overpricing: once vendors settled on a reasonable price, properties were moving - although he agreed with Adam Cook that the town itself was a difficult proposition.

He also highlighted the underlying difficulty of the entire market, namely the availability of mortgages. "Whereas three years ago the 95% mortgage was the norm, today you'll be lucky to get 75-80%. The prospect of raising a 20% deposit is daunting, especially to first-time buyers."

So in conclusion...

If you're selling, don't be too ambitious with pricing: there are buyers out there, particularly from 'away', who have the funds. Conversely, if you're buying, don't be misled by over-ambitious prices. Many reasonable offers are, according to the agents, being accepted at the moment. And if it's village property you're talking about? Location, location, location!

To find houses and flats  for sale or rent in the Okehampton area, just click 'Property' on the home page - and you'll find the same facility on all Local People sites.