Rightmove have just released their assessment of the current property market. They found that the seasonal August price fall was more muted than usual, with price of property coming to market down by just 0.8% (-£2,258) compared to post-credit-crunch average August fall of 1.5% and a shortage of new sellers (down 8% on same period in 2014) and active buyers help to minimise usual summer holiday price falls.
The price of property coming to market is down by just 0.8%, bucking the eight-year post-credit-crunch trend of larger summer holiday price decreases, with the average August price change between 2008 and 2014 being a fall of 1.5%.
Miles Shipside, Rightmove director and housing market analyst comments:
“While new seller asking prices have been muted by the traditional summer holiday property slowdown, the underlying shortage of property coming to market compared to buyer demand has helped to deliver the strongest August price performance since before the credit crunch. Buyers can normally pick up some bargains in August as sellers who are marketing their homes when they should be holidaying often have a pressing need to sell and mark their prices down pretty aggressively. At 0.8% down on the previous month, this is the least generous that sellers have had to be for eight years and a clear sign of upwards price pressure in the pipeline.”
Shortage of property coming onto the market
Rightmove’s year-on-year statistics show that the number of properties coming to market this month compared to the same period in 2014 is down by 8%. A factor in this is the lack of new-build supply over the last twenty years, exacerbated by current new home volumes still being well below the levels reached just before the credit crunch. The historic new-build shortfall results in there being a smaller overall housing stock available to come to market, while the current new-build shortfall also limits the number of existing property owners who are looking to sell their house in order to buy the limited number of suitable brand new homes available.
Three top reasons for home owners not considering a move
1. They cannot find anywhere they want to buy
This was the most commonly cited view, and with home-owners being reluctant to put their own property on the market speculatively and wait for the right property to become available, some high-demand locations can suffer from property gridlock.
2. The costs of moving
With lenders requiring substantial deposits and better mortgage rates available to those who are borrowing a smaller proportion of the purchase price, the costs of moving can eat into buyers’ potential deposits meaning some owners may stay put or improve their own home instead. Whether moving or improving, thorough research and getting advice from property professionals to fulfil the maximum potential and value of your property is very important, especially if the next move is trading up to a more expensive property. It is a good selling market in many parts of the country, but the key is selling to the right buyer at the right price, and if buying again tying it in with the right purchase.
3. They cannot find a property that they can afford
The shortage of property for sale in many popular locations puts upwards pressure on prices, is not good for affordability ratios and typically hits those buying again if they are trading up.
Coventry estate agents Foster Lewis and Co can help advise on all aspects of buying and selling a home and we are particularly keen to hear from those considering selling their home. Call us on 02476 592929 or use our enquiry form.