Date Published 11 September 2018
This month I explore the property market activity in numbers. More and more people are noticing family houses taking longer to sell and having increased levels of price reductions. My research has indicated some interesting statistics that support my forecasting over the last 3 years, when I originally predicted the current slowdown in activity (please see Property News page, under the Services and More section, on our website, www.athomeestates.co.uk, and the blog from 25 November 2015).
Buyers: Rightmove is seeing an 8.6% increase in available properties and flat numbers of buyers. More supply, same demand.
Changing Buyers: Over 50% of buyers are first time buyers, an increase from 38% of total buyers in 2011. These buyers tend to go for new build or apartments close to town centres and train stations. Therefore, a stagnant buying market made up predominantly of first time buyers.
New builds: 30% of sales in Southwater have been going to new builds and away from the resale market.
Transaction numbers: UK wide, completed sales are down 8% in the first 6 months of 2018 when compared to the same period in 2017 (LSL Acadata HPI).
Price reductions: Rightmove statistics show that 1/3 of property has been price reduced, which is the highest figure since 2011 and not surprising given the above statistics.
The negative figures are the result of increased costs of moving, with stamp duty being the main culprit, interest rate rises and a lack of confidence arising from the ongoing Brexit saga. However, I have repeatedly blogged about house price cycles and why I think this is a great time to buy and trade up as long as we don't do something really stupid with Brexit…. These blogs can also be found on our Property News section.
Paul Davies, BSc (Hons), Dip PFS and Cert SMP.
Director of @ Home Estate and Letting Agents.