Category Archives: House Prices

Faltering New Build Sales Add Pressure to Resale Market

Recent research by Warwick estates has found that over the last decade New Build Sales have fallen significantly. In 2011 there were 68,677 sales, but by 2021 that number dropped to 41,634. This represents a fall of 39% at a time when government promised additional new housing stock and the availability of resale properties also fell significantly. _dsc3981-hdr-copy

New build sales also fell year-on-year by -46%, as there were 76,764 in 2020. Whilst this could be attributed to some extent to lockdown and Covid, the development sector was in large part exempt from the lockdown rules so the figures are still nonetheless very disappointing.

With falling stock levels of new build properties, buyers are being forced in turn to look at the resale property sector instead. This at the same time as availability of resale properties is at a critically low level, demand outstripping supply significantly.

What does all of this mean for the typical homeowner or the typical buyer? Likely a continued upward pressure on prices, despite the underlying economic conditions and increases in interest rates.

A potential buyer asked me the other day “Do you think house prices will fall back again soon?” With demand massively outflanking supply my straight, honest answer was “No. not any time soon.” Only a fall in the availability of finance would apply the brakes at the moment and there is no sign at present of this happening, despite the interest rate rises.

If you would like a professional opinion on the current value of your own home, speak to one of our experts by calling 01789 549 549. We’d be delighted to help.

 

The Cost of Trading Up in a Rising Market

House prices have been significantly on the rise in the last couple of years. In some parts of Warwickshire prices have risen around 30% during the pandemic, defying all of the doom mongers’ predictions when Covid first struck. iStock_000002696243XSmall

But what do these big price changes mean for you as a homeowner? Do you check your property value on a regular basis or have sleepless nights about it?

Hopefully not. However, if you decide to move home then the price increases will undoubtedly have an impact on your moving decisions at that point. If you need to downsize then congratulations. You will be able to cash in on your property’s increase in value and should be able to comfortably purchase a smaller home and walk away with a tidy margin at the end of the process.

But what if you are upsizing or perhaps you are a first time buyer? For sure, first time buyers will have lost out. They will need to have a bigger deposit saved up, trying to save as fast as the market is rising is a tough ask.

For the large numbers of growing families who need to upsize, price increases are also not such good news. It may feel good to look at the latest Zoopla Index and see your property value grow, but if the larger property that you desire down the road is going up in value at the same percentage rate then it is getting further and further out of reach as time goes by.

With high demand and low stock levels remaining as the 2 big underlying fundamentals to market demand, upward pressure on prices is likely to remain in place for the foreseeable future. In other words the longer you hold off on that upsize, the tougher it will be to finance when you do decide to take the plunge. So right now, the wait and see approach is costing you money!

Book a valuation today and get the ball rolling on your next home move. Speak to one of our experts on 01789 549 549, we’ll be delighted to help!

PROPERTY PRICES SET TO RISE IN 2022

Just 2 weeks into the new year and a pattern is already emerging for the year ahead. Rightmove have just reported the busiest start to the year ever in terms of new enquiries, yet at the same time reported the lowest stock levels ever.

For those of us who did GCSE Economics, one thinks of the Demand vs Supply graph and the inevitable move up the graph this leads to in terms of price. For those of you who were lucky enough to avoid studying Economics at school then simply picture a shop full of eager buyers and just a few items left on the shelf, the inevitable rush this would create and the shop owner effectively being able to ‘name her price’. It’s not rocket science.Board Images

The current shortage of property for sale seems to be exacerbating the problem, with some homeowners (who need to move) scared to go on sale for fear of not being able to find somewhere to move to. Understandable but not logical.

February, March and April are traditionally the 3 busiest months of the year for the sale market, and the signs are there that new stock will be coming available very soon. All 3 of our branches are currently busy with valuations and the pipeline of new property is building up.

Do you need or want to move in 2022? If so the best properties will likely be coming to market over the next few weeks. Will you be ready and able to pounce when the RIGHT property becomes available or will you miss out yet again because your own home wasn’t sold or wasn’t even on sale?

Elizabeth Davenport can offer you a no sale/no fee option so if you market with us there is no risk of being out of pocket. If you can’t find somewhere suitable to move to then you simply stay put and there’s no charge. Invite our expert valuer to visit your home today and get free advice on your property value and the current market conditions. We’d love to help.

2022 – What next for the property market?

Following the new year celebrations, you may be wondering what lies in store for property prices. Perhaps you are thinking of moving this year or looking at your investment portfolio and looking for some pointers as to where prices might go in 2022?

If that’s the case then you’re not alone. After a very busy year in 2021 for property sales, things cooled off a little at the end of the year. Does this mean that without any Stamp Duty holiday, 2022 will be much quieter?selling your property

Our office opened for 2 days between Christmas and New Year and if the activity during those 2 days was anything to go by, then the market ‘bears’ will be disappointed I’m afraid and the market ‘bulls’ will be excited going into New Year and Spring.

Demand remains high for all of the properties on our books. The fact remains that many workers need to move this year due to changes of jobs and large numbers of sales each year are also due to forced circumstances, so the ‘wait and see’ gang are just a very small portion of the market place.

The main unknown for the year ahead will be supply, but if things remain similar to the last few years then demand will outstrip supply again and that will only create further upward pressure on property prices. Interest rates may go up a little but still remain historically low, so the cost of borrowing and the availability of mortgage funds remain strong factors in all of this.

Ultimately the market looks strong going into 2022 and property remains a strong investment prospect for the foreseeable future. If you would like further advice for the year ahead on your property then call our office and speak to a professional. We’re here to help.

MASSIVE HOUSE PRICE INCREASES – TIME TO SELL?

The government’s latest house price index report (published on 15th September 2021) showed some huge price increases year on year. Local area’s that saw some of the best gains included Coventry prices increasing 8.7% (versus the national average in England @ 8%). Warwick’s price rises were more modest at 2% while Stratford Upon Avon saw a whopping 18.7% increase for the same time versus the previous year. Stratford’s average price now stands at £355,000. Warwickshire as a whole faired very well with average increases of 10.9%.

iStock_000002696243XSmallWith prices so high right now and no way of predicting what the market will do next, selling could be a smart move for those looking to cash in, downsize or release some equity. There are of course plenty of other scenarios where sellers will benefit including deceased estates and separations.

If you’re a first time buyer of course, this won’t be the news you were looking to hear. Having said that, borrowing rates are at an all time low so whilst you may have to stretch your deposit a little further, repayments will be very modest once you’ve made that first purchase.

Long term, purchasing bricks and mortar still looks a very safe bet. Compare average house price increases to current savings rates or other investments, including bonds and ISAs, or perhaps even versus the volatility of Crypto investments, the saying “as safe as houses” still rings as true today as it did 50 years ago.

For professional advice on all aspects of buying or selling speak to one of our experts. Contact Elizabeth Davenport on 01789 549 549.

Does The Asking Price Matter So Much?

If your property has been on sale without success for more than 3 months then this probably means something is wrong with the marketing. This could be any of a number of things, perhaps the photos aren’t up to scratch or maybe the property isn’t being advertised through the right channels. Just as likely though is the possibility that your home is on sale at too high an asking price.

We hear many homeowners say “If the price is too high then people will just make lower offers.” Unfortunately this often isn’t the case and in reality overpriced homes often receive few viewings and subsequently don’t receive any offers at all. The reason for this is simple.iStock_000002696243XSmall

An RICS report has shown that 70% of buyers pay 20% more than they originally set out to spend. This means that if your property is worth say £400,000 the most likely buyers will have been searching for properties advertised between £320,000 – £400,000. So if you put your home on sale at £450,000 the most likely buyers won’t be coming to view it. In fact all of the WRONG buyers will come and view and when they do it won’t live up to their expectations. So you won’t receive any offers.

So asking price is critical in attracting viewings but even more crucially it’s very important in attracting the RIGHT viewers. In Warwickshire over the last couple of years there has generally been a shortage of property for sale so if your home goes on sale at the correct price and is promoted well by your Estate Agent with good marketing details then you should be able to find a buyer in a matter of weeks.

Call Elizabeth Davenport today for more expert advice on selling your property or for a free valuation.

Safe As Houses!

Recent results showed that house prices in the midlands rose by 33% in the last decade from 2010 to 2020. This compared to average wage rises of 20% during the same period. The price rises were in line with the average across the country, London predictably faired the best with 66% rises whilst other regions in the north and west didn’t fair anywhere near as well. iStock_000002696243XSmall

Rises were way short of those seen in the previous decade. The 2000s saw big property price increases, the midlands saw 108% whilst London faired slightly better at 111%. However these figures still didn’t come close to those achieved in the 1980s when prices in the midlands rose by a whopping 196% over a 10 year period.

On average, prices in the midlands over the last 40 years have risen 88% for each decade. That’s an incredible statistic and illustrates the huge and constant upward pressure on prices. For sure there have been periods of stagnation and falls (notably during the credit crunch when the lack of availability in the mortgage market drained the supply of funds available), but the reality remains that when demand outstrips supply prices will continue to head north.

With a continued shortage of new properties being built and a growing population, this isn’t going to change any time soon so property will remain an excellent investment vehicle into the forseeable future. And with no immediate signs of interest rate rises, the benefits of putting money into savings are hard to see, whilst investing in stocks or shares is a huge gamble unless you know exactly what you’re doing.

The phrase “As Safe as Houses” is here to stay, so if you are after a solid investment or simply looking for your next home, there’s never been a better time to venture into the world of bricks and mortar. If you already own property in the Kenilworth, Leamington or Warwick area and want to know the up to date value, call Elizabeth Davenport for expert advice today on 01926 298 298.

Why Your Property Is Worth More Than Next Door’s….

We recently dealt with 2 identical properties located just yards from one another. Theoretically they were both worth the same amount, there was nothing in it. Both went onto the market within a few weeks of one another and both were sold. BUT…One of them sold for significantly more than the other. How on earth did this happen?iStock_000014885905_Medium

The first property was valued by our agency and subsequently marketed with our usual high quality details and at the correct market asking price. There was a brilliant response and lots of buyers flocked over to view, with several offers being quickly received and very soon a buyer was selected. Job done.

The second property was also valued by our agency, but subsequently went on sale with a low-budget Estate Agent at an inflated asking price. The house sat on the market for several weeks attracting little interest. The photos that appeared online were of poor quality, some were blurred and out of focus, others were very dark and the house looked unappealing. Some weeks later the asking price was reduced to the correct level, however by then the property had gone stale on the market and buyers were suspicious. Three or four months later the owners reduced the asking price further and eventually accepted an offer some 5% below the figure achieved by their neighbours.

They saved several hundred pounds in Estate Agency fees but lost several thousand pounds on the sale price of their home. As someone once said “The cheapest option often turns out to be the most expensive…….”

Elizabeth Davenport have a track record of achieving excellent results for our clients. If you want to work with a High Quality Estate Agent then please call us today on 01926 298 298 and we can help get your home sold.

Kenilworth & Surrounding Villages Prospering

Kenilworth Estate AgentsDespite the school summer holidays and some continued uncertainty surrounding Brexit, etc, a very healthy and encouraging number of sales have been achieved during July and August at our Kenilworth Branch. Sales achieved represented a broad range of values and property types, showing that buyers are electing to “get on with it” and not let the continued media circus put them off.

Not that surprising really when you think about it. I’m currently in the process of buying a property myself, the main motivation being that my family and my son in particular need a bigger home and more space to run around in. It’s a decision that has been made out of necessity and when it comes down to it, the “shall we or shan’t we” dilemma turned out to be a no brainer. As a family we are more interested in ourselves and our own lifestyle than what a few hundred dithering politicians are doing in Westminster.

Purchasing a home and investing in property is a long term proposition and whilst in the short term the market can fluctuate, in the long term property prices always go up. In fact as a rule of thumb prices double every 10 years so the phrase “as safe as houses” has been around for decades and is here to stay. The supply of property available for sale continues to fall whilst demand continues to rise.

If you are still thinking of moving in 2019 then now is a fantastic time, September always brings a busy and bustling market once the kids have returned to school. Call our office today on 01926 298 298 to arrange your free property appraisal and set the ball rolling. You’ll be glad you did.

2019 & What a Surprise So Far

Kenilworth and Coventry. Wednesday 2nd January 2019. Christmas Break and New Year over (Somewhat thankfully for the tummy and the head at least!). Five sales instructions, two letting instructions and over forty viewing appointments booked into two office diaries. Not exactly what I was expecting that’s for sure.

My trepidation for the year ahead wasn’t based upon our own sales pipelines (which were sizeably higher than the year previous) but the overwhelming negativity promoted by the general media. Bad news travels faster than good. We all know that negative or stressful news is far more readable and enticing than good.

“Everything is OK. Mortgage rates are low and lenders are even giving you cash back as they try to attract new business. Brexit’s OK too. It’s all been smoke and mirrors.  Everything is fine. If you need to move then move”.

I’d put my name to that quote (as I wrote it!) but I’m being entirely flippant. I haven’t got a clue.

Let’s think about all of us for a moment though. If your employer is not trembling in her heels and your boss hasn’t mooted redundancies overheard in the gents toilets then just look at yourself. What has really changed? What is different with Brexit than without? Your own home. Your own life. Do you borrow and extend? Do you move instead? Do you accept the daily stress of living in the wrong area or within a horrendous commute?

Geographically we are often lucky. Like the weather and hopefully the return of the Beast from the East, we don’t suffer the extremes here.

Mortgage rates are genuinely excellent despite the banks remaining cautious. They’re not giving mortgages away. They’re just lending wisely.

If you buy wisely, you borrow wisely and you show your own  due diligence then the ideal house could be sat there waiting for you. Everything is relative.

Memories are short. Only 18 months ago the buying process was fraught with the horrors of up to a dozen buyers for every popular home. 7 out of 10 houses were rocketing above asking price. Their were more unhappy, “missed out again” buyers than happy ones.

Now you will have the time to even book a second viewing. House prices aren’t soaring above asking price. The houses selling (genuinely in greater numbers than 18 months ago!) don’t have multiple buyers but are selling for the right price and to the right people.

On the ground locally, sense seems to exist in the market despite the political turmoil surrounding and intellectualising it beyond any comprehension. Maybe everything really is OK.iStock_000002696243XSmall