Key Headlines
- Average sales price agreed in January 2021 was £313,500 showing a 10.28% increase from January 2020.
- Agreed Sale prices fell YOY in York in four areas.
- The areas where prices increased were:
YO10 – (Fishergate, Fulford, Heslington, Osbaldwick, Tang Hall)
YO19 – (Dunnington, Escrick, Wheldrake, Murton, Riccall, Stillingfleet, Warthill)
YO24 – (Acomb, Dringhouses, Woodthorpe)
YO31 – (Heworth, Huntington (South), The Groves, Layerthorpe)
YO32 – (Haxby, Huntington (North), Wigginton, New Earswick, Stockton-on-the-Forest, Strensall) - 211 properties marked as sale agreed, a 2.76% decline from the same period last year
- New Sales instructions to the market in Jan 2021 down 25.27% when compared to Jan 2020
- 19.44% more properties showing as available year on year
- Price reductions on sales properties up by 7.95% in Jan 2021 compared to same time last year
Industry insight from Ashley Mehr, Head of Residential Lettings at Churchills Letting & Estate Agents:
Something I say quite regularly is that the numbers don’t lie. Rather they paint an interesting picture as to how the market is performing and arguably useful lead indicators giving us some insight into what may come.
Whilst this is true in many ways this is certainly dependent on the data spread. Take for instance the average sale price agreed for Jan 2021 (taken from Rightmove data). This figure of £313,500 means great news for homeowners but rather bleak news for individuals trying to get a foot on the property ladder.
However, comparing this to Land Registry data (which I might add is perhaps the most accurate measure of property prices), this may tell a different story. The average sales price in December 2020 was £267,900 (Jan 2021 data tbc).
So, what is responsible for this disparity? One factor is the number of transactions which actually complete or the types of property which are sold subject to contract e.g. a larger number of detached houses selling in any given month will distort figures (given that detached homes carry more value in general than terraced houses or flats and apartments.
To further illustrate this point, take the graph above showing recorded transactions in 2020. On the face of it in April 2020 prices sky-rocketed but looking into the data on a more granular level what distorts these figures is the number of recorded transactions (17 sales agreed) as opposed to the on average 216 transactions per month throughout the rest of the year.
In terms of properties coming to the market interestingly there were fewer new instructions (over ¼ in fact) from the same time last year. This could lead to prices rising with a lack of housing stock available. However, incidentally there are near 20% more properties on the market in Jan 2021 than the same time last year. Whilst lockdown 3.0 may have had some influence, I don’t think we need to consider too long, what milestone we face at the end of March 2021 which could impact market sentiment. From the initial outset it would appear York homeowners, like much of the UK, I would expect are holding out to see what happens with house prices once the stamp duty holiday end, that is unless the Chancellor, Rishi Sunak announces an extension.