Time to Sell Rises as Affordability Dips
Past the Peak
Summer is near at hand, and the Jubilee has just passed. We hope you’ve been able to make the most of the special occasion and are renewed for June. The energy may certainly be needed, with growing tension in parliament and continuing global unrest. But how has the market fared since we last checked in?
According to the data leading up to the last month, the predicted flattening of the curve when it comes to property prices has finally begun to take effect. This has yet to mean price growth is diminishing, however, as it is still resting, on average across the UK, at 8.4%. This is only .1% higher than last time around, which suggests that despite continuing demand, prices have reached a natural ceiling.
Demand is unshaken, currently at +61% compared to a five-year average. The upward pressure this has put on prices means that the average property price in the UK has exceeded £250,000 for the first time.
Flow is up, (+7% vs. 5-year avr.) and stock is down (-37%). These are patterns we have seen persist through the year.
Selling Slows Down
What has begun to swing back is time to sell. Though experiencing a significant boost earlier in the year, with properties – especially houses – selling unseasonably fast, ‘time to sell’ is now increasing. More time on the market means a greater need for reductions. Currently, one in twenty properties are having to undergo reductions of an average of 9% to entice buyers.
So, it seems that buyers are still keen to make purchases, but are being a bit more selective at what price point they enter the market. While their reasons would of course be numerous, it’d be a fair bet to say the economic headwinds we were warned about earlier in the year have begun to take effect.
They bring affordability to the forefront. Buyers must reckon with the fact that an average mortgage, on an averagely priced property, is now £852 more a year than it would have been at the start of the pandemic.
For homeowners looking to sell, it is more important than ever to stick to realistic and competitive pricing.
Here at EO, realistic, fast-selling prices are our bread and butter. So, if you have been thinking of how your property would fare in the current market, give us a call on 020 3633 8911.
Luiz De Souza | Administrator