November Market Comment
By lucmin on 11th November 2019
As the Brexit debacle continues to be drawn out, so the evenings are drawing in. Home, as a place of warmth and sanctuary, becomes particularly significant at this time of year. It is interesting to note that a recent survey by Jackson Stops found that 70% of homeowners are unphased in their moving decision by Brexit issues. As we have reported before – most people just want to get on with their life and are more influenced by personal circumstances than the national interest in “will we-won’t we?”. The media really does hype things up!
The factors that affect people’s ability to move remain strong – extremely low interest rates (BoE base rate of 0.75% with no change expected for some time to come), improving affordability (the average house now costs 7.8 times average earnings), low inflation (1.7%) and historically low unemployment levels (3.8% v 8.4% in 2012) all compound to provide strong home-moving fundamentals.
Indeed, we are finding that there has been a slight increase in the “speculative” aspect of buying/selling that has been missing for the past ten years. In other words, if you are thinking of selling, not only is there a reasonable supply of serious buyers who will pay the right price for the right property, but there are also potential buyers who will commit if they find what they regard as a bargain. Those bargains are the properties that came to market early this year at an ambitious price that has since been significantly reduced. (It is so important to price correctly and sell while the property is fresh on the market if you are to achieve the maximum price).
To understand if your property someone else’s bargain, simply look at the market as if you were a buyer. Check how your property compare to others, but resist the temptation to assume that it is worth the same as others that are failing to sell. They are all overpriced! A “bargain” comes in below this, so use other available properties to make yours look good by comparison.
The last available figures (relating to August sales) from The Land Registry suggest a 1.3% annual price increase, although they also report a staggering 0.8% rise over the previous month, which would be a 9.6% annual rise if sustained. As ever, view such figures with the utmost caution – it really is best to speak to us for accurate advice – we know the local market intimately. It really does change from one week to the next depending on the balance of supply and demand. A repossession or probate sale becoming available, or two wealthy individuals registering to buy can affect prices in a particular street within hours
We love this stuff, but we do recognise that it can be confusing and stressful if you are at the sharp end of a move. Please feel free to call us today for a free no-obligation marketing proposal on 01242 257333 or 01452 597994 and we’ll do our best to help you make sense of it all.
©Copyright 2019 Richard Rawlings except as excluded under licence.