(QUERY: insert image function not working) The property market is slower this spring, a normally busy time. The market is being affected by the current unrest in the political arena. Experts at floorplansUsketch looked into this further.
Researchers are reporting a 0.4% increase in average home prices this month. This is the smallest average increase for this month since 2011.
Tepid Temperatures in London
Miles Shipside from Rightmove’s property team mentioned, “March is the start of spring. Normally as the temperatures rise outside, the temperature rises in the property market. This year, home buying activity remains cool. Many home buyers are waiting to see the outcome of the ongoing political unrest. Things improve as you move away from the London market, with solid demand for good properties at the right price. The demand is bolstered by needs for new housing and the low mortgage rates.”
Online Property Search Remains High
The political turmoil has not slowed down interest in homes. Online property search activity remains high.
This could mean a Brexit deal will trigger a quick increase in home buying activity. Home movers are watching the Brexit debate waiting for an answer before they invest their money.
The London market remains slow, dragging down statistics in the UK. Nine out of the eleven regions are reporting higher selling prices compared to a month ago.
The capital area has seen a drop of 1.1% over the last month. The North East region reported a 1.3% decline during the same period. There are a few important differences in the pricing history for the two regions, though.
London prices are still strong compared to 10 years ago, with a 68% increase in value. The North East region has only seen an 8% increase in value over the same 10 year period.
Uncertainty Slows the Market
Shipside commented: “Uncertainty slows down the market and causes buyers to hesitate. Sales numbers are down 7% over last year’s numbers, but that still means we are seeing 93% of the people still buying. This pricing lull is an opportunity for smart investors. They can move to a new home at a reduced price with national prices dropping about 0.8% since last year.”
Change Expected After Brexit
Agents are anxiously awaiting a Brexit deal. They recognise the market should rebound once the uncertainty has passed.
The Director of Fine and Country in Nottinghamshire, Mr. Tom De Ville stated: “Things are still moving in the housing market, but more slowly than a year ago. Both buyers and sellers are waiting to see how the Brexit crisis affects the economy. A quick resolution will reassure hesitant buyers and sellers and get the market back up to speed. Sellers returning to the market will help increase inventory, which is low at this time. Houses currently on the market are reasonably priced. Some sellers have not noticed the market has shifted from a seller’s market and is now a buyer’s market.”
Chesterton Managing Director, Guy Gittins, said: “Everyone expected the uncertainty surrounding a Brexit deal would slow down property sales and price for a while. As the date has approached, both sellers and buyers have decided to see what happens. Still, we have seen a very busy beginning to the year. There has been a spike in buyer registrations. January and February saw an increase in both viewings and offers. This shows there is great demand waiting to spring forth once the Brexit unrest passes. We expect to see a rapid recovery in sales and prices when the uncertainty clears. While London property has been slow lately, it will still outperform other asset investments, no matter how the Brexit deal unfolds.”
Everyone looks forward to an improved economy and rebounding property market as the Brexit uncertainty passes this spring.