A Market Update
During the spring market, it is usual to see a price rise for new properties coming to the market and this spring is proving to be no exception. Prices of new to the market properties have seen an uplift of 1.2% (+£3,447) this month, the biggest month-on-month rise for over a year and the largest rise seen at this time of year since 2016. However, possibly due to the current political climate, the number of properties coming to the market and the number of sales agreed are both below from what they were from this time last year. The national average for properties coming to the market have fallen by 0.1% and the national average of number of properties being agreed is down by 1.6%.
That’s not to say that the market is stagnant as, despite what is happening politically, there is still a need to fill for both buyers and sellers, especially in the family home sector. Family homes, made up for three and four-bedroom properties (excluding four-bedroom detached), are outperforming other sectors as their needs, such as a desire for more space or to be closer to schools, are outweighing the current uncertainty. Family homes appear to be holding their value better as new-to-the-market properties in this sector have been coming to the market at an average of 0.7% higher than this time last year. Properties within this sector are also more likely to come to the market, having seen an increase of new stock rise by 0.7%, compared to the national average falling by 1.2% since this time a year ago. The sector has seen a fall in number of sales agreed, but only by 0.4%, which is still better than the national average.
We at Philip Martin have seen the family home sector doing well. For example, this spring we have listed a number of quintessential family homes, such as a three bedroom house in Perranwell Station and a three bedroom house in Tregony. Both properties generated a lot of interest, especially with families, and sales were agreed quickly.
Interestingly, we have seen other sectors of the market perform well too, such as for properties in need development and refurbishment. We’ve recently advertised three redevelopment properties in Chacewater where we had a high number of viewers for each of them and sales have been agreed on all three.
Despite the political backdrop, demand for property is there, especially when you consider that March this year was Rightmove’s busiest month in terms in site views. Plus with Brexit now delayed until October, there is a window of time where people may not be as hesitant to buy and sell, which could have a positive boost to the market.