Sometimes we are the architects of our own downfall. After such a successful start to the New Year due to the high level of property sales recently we know find ourselves in a position where the National Association of Estate Agents (NAEA) is declaring a property drought.
Thankfully, this doesn’t mean a summer time ban, in fact it actually opens up more opportunities for those looking to sell their property.
A review of the March market showed that the level of available stock within NAEA member branches was currently sitting at an average of 37 properties, obviously a figure that will vary dependent upon branch size and catchment area. However, this is at its lowest level for 7 years.
2013 saw the recent high with stock levels coming in at an average of 60 homes per member branch, whilst last year saw an average level of 40. Although these figures might make dour reading they actually point to one big positive. Stock levels are lower because property are selling! The market in 2013 was considerably more conservative and less active than the market we are experiencing today. With buyers returning to the market in their numbers we are finding that new property to the market is inevitably attracting early interest.
Now for the very basic economics lesson. Supply and demand has a great bearing on the price of a commodity. If there are lots of something available and a wide range of choice you find that prices are lower to attract buyers. However, if supply is low – as with the current property market – then buyers are faced with securing a sale on a desired property closer to the asking price as there are more people looking at less property.
This means that we are seeing properties selling at better prices than they have done before. Sadly this doesn’t quite mean that house prices are rising significantly but here, at Poole Townsend, we have seen a steady growth in prices over the last two years and successfully secured an average of 97% of our offers to asking prices.
In our view, the time is right to achieve the best possible price for your property. Although stock may be lower the activity is still out there and the sales are most definitely following.
Come and have a chat with us in one of our main street offices to see what your local experts can do for you.