Last week, in my latest Market Insights article, I touched on a number of points in the York Property Market, one of which being Time on Market i.e. the average amount of time a property takes to sell.
I wanted to assess how long some properties for sale in York stay on the market. Before I go into the numbers, whilst there may be a tendency to blame the market and uncertainty of certain macro-economic factors, I personally have to disagree with these alone. Whilst these have their place which may impact property prices, think about the simple demand and supply curve. Broken down, if we were to look at property as a commodity, it is in limited supply with a growing demand. I’ve been assessing over my articles how property prices in York are consistently rising and the market is still strong with properties selling, albeit at the right price.
So with that in mind, what determines the selling price of your home or investment? Well to name a few, a property’s condition, floor space, location, competition on the market, the circumstances of the seller.
In light of this, when I hear someone blame the market for their property not shifting, quite frankly, I wince. Ultimately, as Agents, it is imperative, when providing a market appraisal, that we have an intimate knowledge of what is going on and here’s why.
According to home.co.uk, the Time On Market Report the average time on market for unsold property for sale in York as at April 2019 was 121 days, effectively over 17 weeks. Whilst this is significantly lower than it was 10 years ago (amidst the Property Crash), properties in York stay on the market on average 27.37% longer than it was four years ago.
Interestingly, terraced houses sell one week quicker than they did four years ago but what drags the overall number down is York Semi-detached, Detached homes and Flats.
When a property comes to the market, generally the first four to six weeks are crucial. More importantly, within the first 10-14 days, you should arguably know by the level of interest and viewing appointments, whether the price may be a little ‘overcooked’.
There is a direct correlation between Time on Market and the eventual selling price of a property. As time goes on, it really becomes a race to the bottom so the initial price you and your Agent set is paramount. My recommendation is, if you are to appoint an Agent, you should already have a realistic expectation of what your property price will achieve and like in my last article, if an Agent tells you that you can achieve 10% more, ask them to qualify this.
If you have had a property on the market for an inordinate period of time, I hope your Agent will have been in contact with you to discuss a strategy to help you move things forward. If not, give me a call for some free and impartial advice.