Property Price Market Update July 2009

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Quick snap shot:
Property prices have started to bottom out in many areas across the UK, but this is not because of a 'recovery' at the moment, it is because demand and supply are starting to match. Up until February 2009 property prices kept falling as demand for properties was much lower than the supply. Since that time, demand has started to rise a little, but the supply of property for them to buy has fallen back dramatically.

As demand and supply starts to match, so prices start to stabilise and the market gives a 'false' appearance of being in recovery, when really it's just bottoming out.

Did you know the average property prices vary by 30%?
We regularly hear about Rightmove's Index, which measures advertised house prices at the start of the buying process. This month they say that the average house price is approximately £222,000 and prices are down by just 3.1% year on year.

At the other end of the scale, we have the Land Registry Data which records actual sold prices at the end of the process. They are recording a 14% decline in prices year on year (nearly 5 times the fall Rightmove suggest) and an average property price of £153,000, 31% LOWER than the Rightmove price.

If I'm thinking of buying, should I go ahead?
This depends on whether you have enough of a deposit to secure a mortgage at a reasonable rate and whether the type of property you want is on the market at a price you can afford. It is a good time to buy, but what you have to remember is that until we start to recover from the recession prices are not likely to rise that much. This means if you buy now and prices don't grow over the next few years, or the recession gets worse and prices fall, you may not be able to sell the home if you have to move.

Not sure what to do? Why not email enquiries@designsonproperty.co.uk and we'll help explain what you need to do to make your decision.

If I'm thinking of selling, is now a good time to put my property on the market?
If you have to move and can buy another home with at least a 25% equity in it, then you could try putting your property on the market, but you would have to make sure it is at a reasonable price. If you put your property on the market for £150,000 and similar properties are being advertised at £140,000, then you are unlikely to sell - even if your property is in better condition. If you put your property on the market for £135,000 (in our example) then you have a good chance of selling your home. 

However, you do need to check your local market, so read our Regional Information below. If your town isn't featured, then contact us on 0845 838 1763 or email enquiries@designsonproperty.co.uk   

What should I do if my property still hasn't sold?
This is a tricky one. Firstly have a look up and down roads locally, how many properties have sold boards versus for sale? If less than 20% of boards are sold, then it's probably because the market isn't really performing. If it's more than that, you should find a comparable property nearby that has sold and see what it's sold for. Normally when properties don't sell it's because the price is to high, so I'm afraid you may have to look at dropping it to sell.

Why not let us carry out an independent valuation for you? For more information on our property valuations contact us on 0845 838 1763 or email enquiries@designsonproperty.co.uk

What's Happening in my Area? 
"Property markets" really operate within a three mile radius as 80% of people buy property locally (in most areas) so national stats don't really help us understand what's happening in our own area.

In fact what we are seeing is probably the biggest difference regionally than we've ever seen. This is shown by For Sale Sign Analysis's data which tracks the number of properties sold versus for sale.

Click here for Worst Performing Areas
Including: Gainsborough, Sandown and Halesowen

Click here for Best Performing Areas
Including: Bishops Stortford, Aylesbury and Wantage

Want FSSA data for your particular area? Then call 0845 308 2004 or email enquiries@designsonproperty.co.uk

The Independent also published a great article by Rob Griffin on which areas are likely to recover!
You can compare this to Savills in depth Residential Focus Report which also predicts areas that will recover first and what regional growth can be expected over the next ten years.

Best Performing Areas

Town

Percentage of Sold versus For Sale Boards

Tottenham & Wood Green

51.5%

Bishops Stortford

52.5%

Berkhamsted

54.1%

St Ives (Cambridge)

54.5%

Wendover

55.6%

Southville

56.1%

Aylesbury

56.5%

Beckenham

57.9%

Hedge End

58.2%

Greenwich

59.1%

Didcot

59.7%

Wantage

62.0%





Worst Performing Areas

Town

Percentage of Sold versus For Sale Boards

Gainsborough

5.5%

Abergavenny

6.9%

Blackpool

11.0%

High Lane & Disley

11.0%

Ilkeston

11.9%

Sandown

13.0%

Whaley Bridge

13.8%

Sunderland

15.3%

Chapel en le Frith

15.4%

Halesowen

16.1%




 

 

 

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