Well dear reader, it’s that time again where I take a close look at what’s happening in the market across the UK as well as on a more hyper-local level. Being the data geek that I am, and having written several Market Insights articles already, one of the main trends I’ve noticed is that prices in the Greater York area have continued to rise over a sustained period, more on that later.
Across the UK, properties have increased in value by 0.7% on average over the last 12 months according to Nationwide, reporting an average value of circa £213,000. Halifax reported a far more favourable uplift over the last year of 2.6%, to £233,000. What this tells me is that Brexit uncertainty is still not tarring the UK Property Market. That, being said, the average time a property stays on the market has increased by nearly a week since this time last year. Whilst part of this may be down to some level of uncertainty in the market, let’s not discount the other impacts on this figure, increased mortgage lending criteria, a certain amount of overvaluing from some agents in the industry, a lack of pro-activity from some (not all) solicitors during the conveyancing process, to name a few.
Illustration taken from Rightmove index – Mar 2019
If you are considering selling, without teaching granny how to suck eggs, it’s important to put it on at the right price right from the off and not be enticed by the honeyed words of just any Estate Agent. You need to qualify what the agent tells you about the price of your property by doing your own homework. For advice on how to do this, give me a call and I’ll happily provide some tips.
Just as a side note, interestingly, according to the same dataset, average time to sell in Yorkshire and Humber was 65 days, slightly better than the UK average, and four days faster than what it was 12 months ago.
So, what about sales agreed and instructions? According to the RICS House Price Index, it spells a bleak picture on the Brexit debate. “Agreed sales and new instructions continue to decline amidst uncertain political backdrop”.
Maintaining the regional level, according to the Bar Charts below taken from the RICS HP Index for March 2019, both sellers instructing and buyer enquiries are down in Yorkshire and the Humber by approximately 27% and 39% respectively.
What the above tells me is that with less properties being instructed for sale; the decreased supply of housing stock will apply pressure uplifting property prices. However, what is interesting, is that prices are on the rise despite buyer enquiries dropping which could indicate it’s a sellers’ market out there. It could also could be a lead indicator that house price growth may start to slow down.
Focusing on York, according to Land Registry index, over the last twelve months, property prices have shown a capital uplift of 5.51%, currently standing at an average price of £253,800. In short, if your York property went out and earned itself a wage, it would bring you home £254.11 per week. This is the epitome of ‘passive income’ in that, while you sleep in your bed at night, your money works for you rather than you, working for your money.
Interestingly, over the last year, of the 288 York properties sold per month on average, semi-detached homes saw the greatest uplift of 6.73%, followed by detached homes, 6.64%, then terraced homes, 5.95% and lastly flats showing a 2.85% growth.
I’ll give this piece of advice for free. While property prices in York are on the rise, it’s still a tough market out there. With average Time on Market in Yorkshire and Humber stood at over 9 weeks, it is unfortunate if properties are on the market that long.
If you are genuinely considering selling a property in the Greater York area, it may be worth knowing that at the time of writing, there are currently 197 detached, 202 semi-detached, 244 terraced homes, 286 flats and 162 bungalows for sale. When determining the price to position your property, you/your agent shouldn’t just focus on the properties which have sold previously.
Rather, focus on what’s currently on the market for sale as that will not just form part of your comparables, but this will also form your competition when you come to sell. That’s not to say you need to compromise on the price, but rather focus on the product and what you as the seller can do to maximise its saleability. As ever, if you need some advice, you know where to find me.