Published average house prices are helpful, but you really need local advice
The average asking price rise for homes coming to the market in the last month has been about 1.3 per cent - the same as March 2015, when the market was being fuelled by frantic purchasing of buy to let property ahead of the stamp duty surcharge deadline.
The data, from a very well know property portal, says the price rise of the past month was only exceeded at this time of year once before and that was in the pre recession days of 2007. However, annual asking price growth is now only 2.3 per cent - around a third of the level this time last year and could be an indicator of a generally slowing market.
Since the start of the decade, the average March price rise has been 0.9 per cent so this month’s 1.3 per cent uplift is an indicator of a shortage of suitable property for sale in many parts of the country, with strong demand for the right property at the right price.
Modest average wage rises and tighter lending criteria have limited buyers’ ability to pay more. Although credit is cheap, if there are limits on its availability then the pace of rise has to slow even though demand for housing is high. Many buyers are being forced to be price-sensitive, so sellers have to be wary of over-pricing if they want to sell.
Apparently the pace is no longer being set by the more affluent commuter-belt south, including London with its international appeal. Neither is it set by the cheaper north driven by a mass of investors swooping on high buy-to-let yields. As markets in other areas of the country become more mature and run out of price-rise steam, the fundamentals of middle England, i.e. the Midlands, including South Midlands and the outer Home Counties like Bucks, Berks and Oxon, have become a more attractive proposition.
Average prices are of course dangerous and sellers must get an informed valuation and some realistic advice on their local housing market. Not just “how much is my home worth”, but how do I go about achieving the best result in my preferred time frame.
Talk to Martyn R Cox & Co., without obligation and get that important advice before making a commitment. Call us on 01993 779020. Free valuation, excellent commission terms and No sale- No fee.