“Will the Walsall Property Market Crash…?”

Will the Walsall Property Market Crash
Will the Walsall Property Market Crash…?

A question posed by a local portfolio landlord of mine last week.  Who would be the gainers and losers…?

Those Walsall people wanting property values to drop would be those 30 or 40 something’s, sitting on a sizeable amount of equity and hoping to trade up (because the percentage drop of your current ‘cheaper’ property will be much less than the same percentage drop of the more expensive property– and trading up is all about the difference). If you have children planning to buy their first home or you are a 20 something wanting to buy your first home – you want them to drop.  Also, Walsall landlords looking to add to their portfolio will want to bag a bargain (or two) and they would love a drop!

Yet, if you have recently bought a Walsall property with a gigantic mortgage, you’ll want property values to rise. If you are retired and are preparing to downsize, you will also want Walsall property values to rise (because you will have more cash left over after the move).  Also, if you, a landlord looking to sell your portfolio or a Walsall home owner, who has remortgaged to raise money for other projects (meaning you have very little equity), you will want property values to rise to enable you to put a bigger deposit down on the next purchase.

So, before I discuss my thoughts on the future, it’s important to look at the past…

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Do we have a ‘triple speed’ Walsall property market?

Do we have a ‘triple speed' Walsall property market?
Do we have a ‘triple speed’ Walsall property market?

As you might imagine…“What’s happening to the Walsall Property Market?” is a question I am asked often & repeatedly.  Well, would it be a surprise to hear that my own research suggests that there isn’t just one big Walsall property market – but many small micro-property markets?  In the past I have written about the dual speed Walsall property market but now I’m seeing the emergence of three!

For ease, I have named them the…

  1. lower’ Walsall Property Market.
  2. lower to middle’ Walsall Property Market.
  3. ‘middle’ Walsall Property Market.

The ‘lower’ and ‘lower to middle’ sectors of the Walsall property market have been fuelled over the last few years by two sets of buyers.  The first set, making up the clear majority of those buyers, are cash rich landlord investors who are throwing themselves into the Walsall property market to take advantage of enticingly low prices and even lower interest rates. The other set of buyers in the ‘lower’and ‘lower to middle’ Walsall property market are the first-time buyers (FTB), although the FTB market is in a state of unparalleled deadlock as it’s been trampled into near-immobility and incapacity by the new 2014 stricter mortgage affordability regulations and also fewer mortgages with low deposits.

Some of you may be interested to know how I have classified the three sectors…

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