New data has shown that the property markets is a lot cooler than it should be for this period, as the spring period which is usually traditionally busier has been affected by a political climate that is uncertain. While you wait for the right time to move, it might be wise instead to spruce up your current home with bespoke furniture.
Our team of data scientists discovered that average prices for the properties that are going to go on sale soon have only risen by 0.4% this month. This is the lowest of the monthly average rises for this time in the year since 2011.
Temperatures Tepid in the Housing Market
Miles Shipside, a property expert from Rightmove, has stated that while March is the mark for the beginning of spring, temperatures have not yet risen within the housing markets. The buying activity is much cooler than it should be, while certain buyers are hesitant while they wait for a political climate that is more settled.
There is a greater resilience as we move further away from London markets, with a sound-bedrock for the demands for the correct properties at the correct prices, which is reinforced by the ongoing needs for housing combined with cheaper mortgage borrowing.
Despite political uncertainty, the search activities on different property websites have remained steady.
This is an indication that home movers are still keeping a watch over the markets, which may result in that bounce into the near future, as soon as Parliament has found a breakthrough when it comes to Brexit.
London remains the primary drag, yet 9 out of 11 regions are still seeing the new-to-the-market sellers that have priced higher when compared to the previous month.
The capital prices are now down by 1.1% from the last month, while the North East is one of the other regions that recorded a fall this month, down by 1.3%. Yet their pricing histories respectively have been completely different.
The prices in London are still 68% higher than they were 10 years ago, with the buyers in search of prices that will settle at levels of a fairer value. Yet the North East has seen the new seller asking for prices that were up by only 8% in that time.
Shipside added that people and the markets do not enjoy uncertainty, and even though the agreed numbers for sales are down by 7%, this actually means they have still managed to run at 93% of the levels from last year. Many of the potential buyers are either carrying on with life or regarding this lull in price as the opportunity to either enter the housing ladders or to even move up a rung, with the asking price national average being 0.8% cheaper when compared to one year ago.
Agents are also agreeing that the markets should benefit from the resolution to Brexit sooner instead of later.
Slow Turning Wheels
Tom De Ville, the Director at Fine and Country Nottinghamshire, states that the wheels continue to turn when it comes to the housing markets, yet they are turning a lot slower when compared to the previous years due to the hesitation from sellers and buyers. A political outcome that is more certain will assist in reassuring those that are currently hesitant, which would get these wheels turning faster once again, along with helping to boost the much-needed supply. Homes which have been sensibly priced are still in the process of selling, yet there are a few sellers who have not yet realised that there has been a power shift from a “sellers’ market” to a “buyers’ market”.
The Managing Director, Guy Grittins, from Chestertons, has stated that it was just about inevitable that uncertainty caused from Brexit would start dragging prices of properties down over the short term, particularly since this date is getting closer and lots of buyers have taken the “wait and see” approach.
However, they still experienced a start that was extremely busy to this year, with a marked increase in the buyer viewings, registrations, and offers which was consistent throughout January and February, which is a reflection of pent-up demands and is suggestive that the prices have reached a level whereby the buyers are more comfortable with buying. Guy goes onto say that he sees the drop this month as a blip that is temporary and expects that these processes will recover as soon as clarity has been reached over Brexit.
London on Top
Over the medium and the long-term, London properties have still managed to outperform many of the other types of asset classes and he believes it will still continue to be a very solid investment, regardless of what happens with Brexit.