Our economy and property update in association with Volterra Consulting.

Economy

There has been much talk among economists about the recent strong recovery from recession and speculation about whether this is sustainable or whether a double dip is looming. Our view is more positive than some but not completely bullish - we're probably not on track for the most remarkable recovery ever seen but we're also probably not heading into a double dip either. Either is possible but the most likely course of events is that the economy will continue to plod along for a few quarters.

The second quarter of 2010 has indeed shown the strongest quarter on quarter growth for over a decade but what does this really mean? If we look back at past recessions there is a complete mixture of types of recoveries.

Property

A snapshot of activity in the high end residential market in the first two weeks in September shows that viewings, stock levels and deals done are up 22%, 25% and 10% respectively on the same period last year. This, to a degree, conflicts with the available data sources at the national level, although these themselves do not tell a clear story. There has been significant variation in performance across regions and sectors, suggesting that good property deals and investments can still be made provided they are targeted in the right areas.

Read the full report: Volterra eBulletin Q3 2010