Tue 01 Dec 2015
- Average annual asking prices up by 6.2% with actual selling prices up by over 13% in some areas of the Midlands.
- Smallest drop in houses prices during the seasonal November slowdown.
- Introduction of Help To Buy: ISA to aid first time buyers.
- Potential New Year’s sellers should come to the market early to take advantage of the surge of home hunters on Rightmove on boxing day.
- Home-owner confidence sets the scene for higher prices in 2016.
According to a Rightmove report (Nov 2015) average house prices are up 6.2% in a year.
With 10 offices selling properties across the midlands, we are able to compare these findings against our own sales. In the West Midlands we have seen a similar increase in asking price at 6.1 % and actual selling prices a little higher at 7%. In the East Midlands, which includes Ashbourne, the increase has been twice that with asking prices up 12.3% and selling prices up 13.1%.
Nick Pollitt, Property Valuer for John German in Lichfield comments "We’ve seen a marked increase in values this year, particularly in the £250,000 to £500,000 range where demand is high from upsizers and downsizers. Rural and individual larger properties are beginning to attract more interest but still price sensitive so for those looking to sell their home correct valuing is essential.”
Although the increases are not as high as the previous year, they are still making it difficult for first time buyers to get on the first rung of the property ladder. However there are further government incentives being introduced to try to help ease the situation including the Help To Buy: ISA. Any first time buyer saving money into a Help To Buy: ISA, the government will boost their savings by 25% up to the value of £3000. Help To Buy: ISA – How does it work?
The Rightmove report also revealed that there has been the smallest drop in houses prices (-1.3% nationwide & 0.3% in the Midlands) since 2011 during the seasonal November slowdown.
According to the report, sellers who come to market in the run-up to Christmas typically set lower asking prices as buyers are harder to attract at this time of year. However, this November’s price-dip of 1.3% (-£3,977) is much less marked than usual, and is the smallest seen at this time of year since 2011. This indicates a positive underlying outlook for the year ahead among home-owners, with research by Rightmove showing them to be in a confident mood and largely unfazed by the risk of higher interest rates in 2016. Given these findings, and the likelihood that demand will continue to outstrip supply, prices look set to increase again in many locations in 2016.
Rightmove also states there is a huge peak on the number of people house hunting on their website on Boxing Day, last year there were over 1 million visits on Christmas day itself.
Paul Barnes, Director at John German in Stafford advises “For anyone waiting to bring their property onto the market in the New Year, I would definitely recommend them to start the process now. Having your property on the market during the Christmas holidays is a great way for you to capitalise on the increased traffic.” More advantages to selling your property during the quieter winter months.
An unexpected surprise this week has been the proposed 3% increase on stamp duty from April 2016 for buy-to-let investors and second-home owners. James Morgan, Managing Director of John German Estate Agents, examines how this may affect the Midlands property market in our separate article Stamp Duty to Rise in April, Could Now Be the Time to Sell?
Whether you are looking to buy or sell a property, at John German we have a number of property experts available to offer you friendly, informative and professional advice, including; Independent Mortgage Advisors, Chartered Surveyors and experienced Sales Negotiators & Valuers.
"To Lizzie, Thank you so much for encouraging me to view a house I wasn't entirely convinced on. It was exactly what I was looking for and I am delighted that it is now mine! "