CARDIFF

KELVIN FRANCIS
Kelvin Francis FRICS, Director

We can report that the market is changing. The numbers of properties coming onto the market are increasing, but they are taking a longer time to sell. Demand has perceptibly lessened, at least following an initial flurry of interest at the outset and if a sale isn’t agreed at an early stage, it is starting to be a longer process. Unfortunately, some vendors are a little slow to accept these changing conditions and are rejecting early offers, against professional advice and sometimes living to regret this decision, further on.

Offers now are rarely above asking prices, although still close enough to them, commonly 97 per cent to 99 per cent of the asking figures. The correct pricing is now more critical, as it is important to attract the maximum interest from those seriously in the market to buy. The increasing numbers of properties coming onto the market and the longer time they are staying there, means there are many more choices for buyers to consider and if you are overpriced, you will be disadvantaged. The good news however is that properties are still selling and are coming onto the market in improving numbers.

RISK

A current risk, however, is a fairly frequent tendency for mortgage surveyors to down value sales agreed in the open market, sometimes by considerable sums. This is causing some sales to falter and considerable inconvenience, whether because buyers have to find an increased deposit, or go through the cost and inconvenience of applying to another Lender. The reasons this is happening, is a fear amongst these surveyors that the market may fall back, but this very action will encourage that to happen. A good estate agent will have gone to the trouble of providing a ‘Surveyors Pack’ with comparable sales evidence and background such as local levels of demand, including the numbers of potential offerors who had been disappointed.

The net result is that some buyers are frustrated by not being able to proceed and the property ends up being sold to someone else. Property is a long-term purchase and any slight fluctuations in the market prices even themselves out over time.

Feature property: Church Lane, Coedkernew – £750,000

COVENTRY

ELIZABETH DAVENPORT ESTATE AGENTS
Nick Luntley, Director

The last couple of years of the Coventry property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price. Yet, over the last few weeks, the tide is beginning to turn, and the pendulum swing more towards a balanced Coventry property market as more homeowners in the Coventry area (CV1 – CV7) have been reducing their asking prices. Of the 1,536 properties for sale in the Coventry area, 419 have been reduced in price in the last three months.

The average percentage of the price reduction in the Coventry area has been 5.6 per cent. I must stress house prices/values haven’t dropped 5.6 per cent, just the asking prices of some of the properties on the market. This is good news for first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price. It is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs. It is important that I inform all property owners of the real story. They can judge for themselves where they stand in the current property market, thus enabling them to make better informed decisions.

OVERVALUING

Some estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent’s book, as opposed to a competitor.

You might ask, what is the problem with that? Well, you only get one opportunity at hitting the market as a new property. If you have a two-bed semi that is on the market for a three-bed, semi-detached house price – buyers will ignore the property and start to believe there is something wrong with it. That is until the seller is forced to reduce their asking price. According to research by Denton House, the average British house buyer only views around six properties before buying, so sellers shouldn’t assume viewers will come round their optimistically priced home, thinking they will knock them down. Quite the opposite – they just won’t view the home in the first place. Realistically pricing a property will ensure it sells at a decent price to a decent buyer – first time, every time.

The last couple of years of the Coventry property market has seen some amazing prices being achieved with multiple offers and many properties selling for way over the asking price. Yet, over the last few weeks, the tide is beginning to turn, and the pendulum swing more towards a balanced Coventry property market as more homeowners in the Coventry area (CV1 – CV7) have been reducing their asking prices. Of the 1,536 properties for sale in the Coventry area, 419 have been reduced in price in the last three months.

The average percentage of the price reduction in the Coventry area has been 5.6 per cent. I must stress house prices/values haven’t dropped 5.6 per cent, just the asking prices of some of the properties on the market. This is good news for first-time buyers and landlords, as they will be more likely to buy a property at a more reasonable price. It is also good news for sellers as most of them will end up paying less for the higher priced property they end up buying after selling theirs. It is important that I inform all property owners of the real story. They can judge for themselves where they stand in the current property market, thus enabling them to make better informed decisions.

OVERVALUING

Some estate agents will deliberately over inflate the suggested initial asking price to the house seller, because it gives them a bigger chance to secure the property on that agent’s book, as opposed to a competitor.

You might ask, what is the problem with that? Well, you only get one opportunity at hitting the market as a new property. If you have a two-bed semi that is on the market for a three-bed, semi-detached house price – buyers will ignore the property and start to believe there is something wrong with it. That is until the seller is forced to reduce their asking price. According to research by Denton House, the average British house buyer only views around six properties before buying, so sellers shouldn’t assume viewers will come round their optimistically priced home, thinking they will knock them down. Quite the opposite – they just won’t view the home in the first place. Realistically pricing a property will ensure it sells at a decent price to a decent buyer – first time, every time.

Featured property: Bridge End, Warwick – OIEO £1,250,000

SOMERSET

WEBBERS PROPERTY SERVICES, WELLINGTON
Roger Sattler, Local Director

Looking around the local High Street in Wellington, Somerset, it is clear that many local residents have taken this opportunity to travel, whether to enjoy our beautiful region or fly to further destinations. For those not travelling however, there is most definitely still a good demand for homes and, thankfully, an increase in newly available properties as more people decide to list their properties. Generally, pretty much every type of home is of interest, but without doubt, the most popular are homes that have between two and four bedrooms and are located within the town. Bungalows are particularly sought after and are at a real premium right now, as are the traditional Victorian houses which are always desirable.

CRASH FEAR

We are experiencing more and more homeowners who are questioning the strength of the market now, and many are suggesting rumours of a pending crash due to the cost-of-living crisis and economic head winds. However, for the majority, demand is strong and despite the recent 0.5 per cent rise in interest rates, at 1.75 per cent borrowing is still cheap compared to historic levels and good deals are out there. In fact, even if the bank rate rises to around 3 per cent, which is now the peak the governor of the Bank of England has predicted, it is still nowhere near the interest rates seen before the credit crunch of 2007, where rates of 7 per cent and higher where not out of the question.

While the interest rates are going up, banks have been relaxing their affordability criteria making it easier for some get a mortgage approved. Mortgage availability will be the key difference between the current market and the one we saw during the credit crunch. Mortgage availability will help to ensure that transactions numbers remain steady and the market keep moving forward.

Now that there is a return to a more normal market, buyers and sellers are definitely seeking best advice from us, knowledge and experience is going to be most valuable going forward into the next six to twelve months.

Featured property: 122 Burrough Way, Wellington, TA21 9PR. Priced at £425,000 – VACANT