Was that summer? Let’s hope not, just a precursor to a glorious time ahead. At the time of writing the sun has dimmed and the Bank Holiday weekend is approaching with forecasts of rain (but we need it I hear you shout). They say life imitates art, well in this case the property market is imitating the weather.
With an extremely busy start to the year behind us and the chaos that was the stamp duty deadline firmly passed it seems that, as with the weather, we have settled into a small lull in the market. Now before we all jump up and assume that this is a bad thing there are a few positive notes still to be sung.
Throughout May asking prices for property listing have grown at their slowest rate since 2016 increasing at 0.6% on a monthly basis and 1.2% annually. Rightmove reports that although we are still setting records for average price levels the growth is smaller than expected. That said there is still growth and we can’t always be posting Covid era growth levels – it’s just not sustainable.
This is actually the first month this year where buyer demand is actually lower than this time last year. That said the year to date demand is still 3% higher than last year and the number of sales being agreed over the last month is 5% higher than this time last year. Well priced property is still being bought by decerning buyers.
The level of available property is also running at a high meaning that advertised prices need to remain competitive – reflected in the slow growth rate over the month. Sellers need to be smart enough to not go chasing the unachievable price and make sure they are opting for the realistic. There are several alternative options out there for buyers.
So whilst the market may not be fully in bloom yet there are signs of a summer resurgence. The Bank of England has once again reduced the Base Rate and mortgage deals are becoming ever more affordable.
By making sure you use an experienced estate agent with a wealth of local knowledge you will be approaching the market fully armed and best prepared. As always come and have a chat with us at Poole Townsend.