“So. How’s The Market?”
After a great week of valuations and viewings, I’ve had lots of questions about the current local market, so I scribbled…
House Prices Down 1.3% in August. Don’t Panic.
Prices of homes entering the market typically drop slightly in August. Rightmove have confirmed that for the first time this year, prices are down 1.3% in August. Don’t panic though, as this is on par with trends from the last ten years, and it’s almost certainly due to holidays rather than rate rises. Expect a normal rebound towards the end of Aug/ beginning of September.
Summer holidays are taking priority (and rightly so!) with some sellers pricing more competitively to secure a buyer quickly, especially if they’ve found their next purchase. We’re also seeing sellers already think about completing on sales before Christmas.
Supply < Demand.
With the supply-demand balance still skewed (buyer enquiries are still 20% higher than in 2019), supply is increasing. And whilst I think it’ll take a few months to fully feel the effect of interest rate increases, first time buyer repayments (on 10% mortgages) now exceed £1000/month for the first time. Yikes!
I remain positive though, with sales still being made both on and off-market at great prices. We’re very lucky on the south coast, and I believe things will remain healthy here for the rest of 2022.
This is why speaking to ‘boots on the ground’ agents is important- we use market pulse data (what’s happening THIS WEEK) to guide our appraisal suggestions and when advising on moving plans.
What Should You Do?…
A good agency will help you navigate this uncertain but healthy market. It’s the same old chicken & egg question. ‘Do I sell first, or look for my dream home?’ The answer, is both: Work with a proactive agent that can ‘prep and perfect’ your marketing material ready for their buyers, as you start your search. You need to be seen as a HOT BUYER! And talk to a reputable whole-of-market brokers that can make sure you’re on the right financial path.
I’m working with several families and couples that aren’t letting doom & gloom news deter from their long term plans- if you can lock in a mortgage, now could prove to be the best time to move over the next few years.