Residential Property Market Report Spring 2018

Is it really Spring? You could be forgiven for thinking Spring hasn’t quite got here yet given the recent cold snap. Unpredictable really, a little bit like the local property market at the moment in spite of the vast improvements we’ve seen recently. By unpredictable, I mean our local residential property market is difficult to call. We’re all in agreement that it’s improving, that’s for certain. But like any market it is very much predicated on buyer and seller confidence and not immune to outside influence.

The market has significantly improved in the last twelve months with sales volumes increasing significantly in comparison to previous years. Buyers are buying again – in far greater numbers. It wasn’t long ago that buyers were more inclined to wait it out on the side lines given the uncertainty in the market.

This is great news, no fantastic news for ALL of our vendors and sellers who are in the market, however, it is difficult for any agent to predict with any certainty what might happen in the coming 12 months. I go back to those outside influences again. I won’t mention the ‘B’ word.

I’ve been lucky enough to have been asked to write articles before and interestingly, my general advice doesn’t change. Well presented, good quality, accurately priced property sells. Period. And we will sell stock of this sort at figures very close to the asking price. That’s a massive difference to the picture painted 2 or 3 years ago which is hugely encouraging for everybody in the market buyers and sellers alike. But there are still properties available for sale that have been on the market for a number of months – far longer than really they should have been. Why is this?

One reason really; price. The list price is the single most crucial element in securing a sale in a sensible time frame. Location is key of course, quality and finish equally important but the price is what drives interest. Price is what generates viewings, leads to offers, and result in sales. If the price is wrong, often if it’s vendor led, a house can stick on the market which given you want to sell isn’t meeting your objectives. The difference can be marginal which is why you must take your agent’s advice. Most of them know the market well. In my opinion, the first 4 to 6 weeks of the marketing of your property is absolutely crucial. It is in this period that you should receive the best offer you are likely to receive provided of course the list price is where it should be, more than likely where the agent has recommended it to be. If you don’t receive an acceptable offer in that period then consideration should be given to the price.

The number of sales our business has agreed on behalf of our clients has increased significantly in the last 12 months. The number of listings our business has taken on has increased significantly in the last twelve months. It’s true that property prices have fallen from historic highs, which has led to an increase in sales activity. It’s also true that there is a real lack of good quality, saleable stock, particularly at the lower end of the market. The last 7 properties we’ve sold that occupy the first rung of the property ladder have all sold for nigh on their asking price, some over. Fantastic results for our clients and encouraging that the market is becoming more consistent.

Before you all rush out to buy houses (although I wish you would!) let me just cite a little caution. Despite the improvement in the market; despite the increase in sales, there simply isn’t enough stock available on the market for sale today. Specifically, that’s good quality, well finished, available and saleable under £400,000. It doesn’t really matter what it is or where it’s located on the Island. There just isn’t enough which is presenting some challenges for would-be purchasers. What would I advise? If you’re looking for a new home, contact us. Register with us. Develop the relationship and make sure that you’re very much in our mind’s eye when we list the sort of property you’re looking to buy. We’ll reciprocate too of course; it’s what we do.

In conclusion the best advice I can give anyone considering selling their home is the following; price it according to the agent’s advice. They are the professionals, they are selling houses like yours every day of the week. They understand the market, they understand sentiment and they know how to get you the very best result. I can promise you that. Oh and one last thing and this really is more geared towards the buyers (who in my opinion are equally as important); you can do anything you want to a property provided you have the budget; but remember, you can never move it – location is just as important as price.

Tim Groves
Black Grace Cowley

tim@blackgracecowley.com
(01624) 645555


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