Property Price Market Update October 2009

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Quick snap shot:
  
Property Statistics show the buying and selling market continues to operate at "OK levels" albeit that the number of properties changing hands is still down year on year by 24%. As we move to Xmas, the number of buyers looking for property are slowing in many areas, although high demand areas seem to be continuing to sell well and at near asking prices. This is reflected in the percentage of properties sold versus for sale which show we are converting at around 31% versus August's peak of 36%. However the picture remains regional with areas such as Hartlepool and Chorley achieving less than 10% conversion while Ivybridge and Thatcham/Newbury at around 50%.

Need an independent valuation of your home? or one you want to buy? Then contact us on 0845 838 1763 or email enquiries@designsonproperty.co.uk to find out how we value properties.

Should you buy before the stamp duty increase?
On 1st January 2010 the stamp duty threshold changes as follows:-

Current
0% on purchases up to £175,000
1% on purchase between £175,001 to £250,000
3% on purchases between £250,001 to £500,000
4% on purchases between £500,001+

To
0% on purchase up to £125,000
1% on purchases between £125,001 to £250,000
3% on purchases between £250,001 to £500,000
4% on purchases between £500,001+ 
 
As a result if you complete on a home for £175,000 before 31st December 2009 you won't pay any stamp duty and from January 2nd (no-one will be working on New Year's Day!) you will pay 1% x £175,000 = £1,750 to the government in stamp duty land tax.

So is it worth you completing before the end of the year? Firstly if you are already in the process of buying, then absolutely yes, you should complete before the end of the year. However to do this you need to make sure your legal companies put in writing that they will complete prior to 31st December - otherwise they may miss the deadline at your cost!

Secondly, if you are looking at making an offer on a property now to complete before the end of the year, that's quite a big task as most purchases/sales take longer than six weeks and really you are looking at completing within five weeks due to Xmas holidays etc. So if you are well into the buying process, narrowing down the property you want, then it's worth getting on with the purchase, but you MUST choose a good legal company that will do a 'no sale no fee' purchase (and sale for the sellers) that sign up to completing by 31st December 2009. Any legal company that says 'it's difficult to commit to a deadline' don't use them as they obviously don't know how to complete under pressure.

Finally, the only reason you should be buying a home now is that you either want to:-

1. Invest and make some money in the future.
2. You are buying for the first time and looking to stay in the home for five or more years. 
3. You are already a homeowner and are trading up so you save money on the property you are buying.

And for the sake of saving a few thousand pounds, you have to consider whether it's worth putting yourself under pressure up to until Xmas to buy. It's likely that next year from February through to May that more properties will come onto the market for you to choose from and prices are unlikely to start increasing much, unless you are in a very high demand area. So, for the sake of saving less than £2,000, it's not really worth 'rushing' into a property purchase of a home you need to be able to stay in for five or more years to let prices fully recover from the current recession.  

So, if you are in the process of buying, or are about to make an offer, then do try to beat the stamp duty increase. However if you are only just thinking of buying, it is much better to take your time as the lenders and legal companies will struggle to complete on a property in the few weeks we have left before Xmas.

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 Best Performing Areas
Including: Cambridge, Berkhamsted and Stansted.

Click here for Average Performing Areas
Including: Aylesbury, Gloucester and Swindon.

Click here for Worst Performing Areas
Including: Pontefract, Dudley and Melton Mowbray.

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

TownPercentage of Sold versus For Sale Boards
Clifton and Redland61.2%
Cambridge60.8%
Hedge End60.2%
Bishops Stortford58.6%
Wallington57.7%
Brislington & East Southville55.9%
Beckenham55.2%
Berkhamsted54.9%
Wantage52.9%
Shirley (London)52.1%
Southville51.4%
Sawbridgeworth51.2%
Totton50.7%
Loughton48.4%
Westbury & Filton48.4%
Stubbington47.8%
Purley47.8%
Tottenham & Wood Green47.7%
Redhill47.3%
Billericay46.5%
Tonbridge45.8%
Stansted45.2%



Average Performing Areas

TownPercentage of Sold versus For Sale Boards
Aylesbury44.8%
Stroud44.7%
Barnham44.1%
Sudbury43.8%
Bognor Regis43.6%
Hoddesdon & Ware43.5%
Greenwich43.4%
Caterham42.6%
Bedford42.2%
Shirley Road (Southampton)42.2%
Gloucester41.7%
Bitterne40.9%
Catford40.7%
Winton39.8%
Northampton39.8%
Romsey39.4%
Wanstead39.4%
Leighton Buzzard38.1%
Knowle & Dorridge37.9%
Swindon37.0%
Loughborough36.5%
Newton Abbott36.4%
Stonehouse35.2%
Solihull & Shirley35.0%



Worst Performing Areas

TownPercentage of Sold versus For Sale Boards
Pontefract8.1%
Blackpool13.0%
Sunderland14.4%
Altrincham14.4%
Crewe14.6%
Alfreton18.5%
Halesowen18.8%
Dudley19.4%
Gateshead19.4%
Ilkeston19.5%
Macclesfield19.6%
Newcastle West20.5%
Grantham21.9%
Worksop22.8%
Coventry23.4%
Bromsgrove25.7%
Lichfield & Rugley25.9%
Torquay26.8%
Harborne27.4%
Rushden & Raunds & Stanwick27.7%
South Hayling28.1%
Pulborough28.3%
Worcester28.5%
Chippenham29.7%
Melton Mowbray30.7%
Paignton31.4%
Gosforth31.7%
Biggin Hill32.3%
 

 

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