Market Update July 2019
The Spring Market has overflowed into Summer…
As British politics continues to be a bit of a bun fight, the great British home buying public is taking a more pragmatic approach and appears to have disconnected from such trivialities, with buyer registrations nudging up by between 4% and 9% across the UK.
This year, the spring market appears to have overflowed into the summer, with no sign of any seasonal slowdown. Although the summer holidays have yet to begin in earnest, anybody seriously looking to move house is unlikely to be deterred by the interruption of their annual holiday.
Speculative buyers used to take a break over the summer, but today’s market is less sensitive to such traditions. So if you are selling and you are tempted to take your house off the market for the summer – our advice would be that you should not! There are currently 12 buyers chasing every listing (28 in London) which is helping to maintain prices and if you are not on the market, we guarantee you won’t sell!
An interesting pointer to the future is that although transaction numbers fell slightly (4.5%) last month, the number of viewings increased by nearly 2% nationally, and by a whopping 14% here in Ceredigion. Summer is actually a great time to sell –longer evenings, gardens looking their best, and all-round feel good factor combine to create the perfect environment for buyer and seller alike.
The lack of stock available for sale is forcing people to rent instead and we have seen a considerable rise in tenant enquiries. Despite regulatory burdens and shrinking tax benefits for landlords, all other indicators suggest that property continues to be an excellent investment with good returns and relatively low risks for landlords looking for a healthy and reliable long-term yield.
Possibly the most newsworthy figure this month relates to the apparent demise of internet estate agency, with their market share of new properties entering the market virtually halving over recent months an almost negligible 3.8% of the market. This is despite millions spent on TV advertising campaigns in their quest to offer a low-value solution to a problem that doesn’t even exist. With continual reports of online-only agencies going into administration and PurpleBricks expected to announce losses of over £50m, could their days be numbered?
So much of our business originates from seller who have been disillusioned with a DIY-type estate agency service that has simply failed to deliver the results they had expected. We’d be delighted to show you what local estate agency is really all about, even if you’re only toying with the thought of moving. Why not call us on 01970 636000? You might be pleasantly surprised!
Hopefully here from you soon,
The Alexanders Team