Market Comment (June 2022)
With July fast approaching, your immediate thoughts might fall on the summer break, and how to occupy yourself and the loved ones. Of course, the property market keeps moving on and there is still a lot to keep up with.
Price of property coming to market still rising
In information provided by Rightmove, the average price of property coming to the market has risen to £368,614. This is the fifth consecutive record of 2022, indicating prices are continuing to rise across the country.
However, this was only an increase of 0.3% with some leading sources suggesting that the rate of growth in the housing market is starting to slow down. Factors cited for this slowdown include:
· The cost of living affecting people’s ability to afford a house move
· An increase in homes supplied to the market
· Seasonal price drops
Tim Bannister, Rightmove’s Director of Property Science, comments: “The exceptional pace of the market is easing a little, as demand gradually softens and price rises begin to slow, which is very much to be expected given the many record-breaking numbers over the past two years. When we look at the number of buyers contacting estate agents compared to 2019 or the pre-pandemic five-year average, demand is still very high compared to what was once considered normal.”
Do you have an honest valuation of your home?
Of course, when it comes to selling property and connecting with buyers, it is vital homeowners have a genuine valuation of their home.
A new study by Quick Move Now suggests property owners in England and Wales overvalue their homes by 8%. This can hamper your property market ambitions, or perhaps leave you underwhelmed by activity in the market.
Danny Luke, Quick Move Now’s managing director, said: “When we first started comparing the figures in 2019 homeowners were overvaluing their properties by an average of eleven percent. The current figure of eight percent indicates that homeowners are becoming more accurate with their assessment of their home’s value. Property websites such as Rightmove and Zoopla are making it much easier for homeowners to gather information about the local property market and what their homes might be worth. Some sites allow the public to search for recent sold prices in the area, whilst others go a step further by using recently sold data and general property market trends to offer a basic property valuation tool.”
Energy efficiency issues still impact the market
With increasing energy bills very much at the forefront of people’s thoughts, it is natural homeowners are keen to make energy-efficiency improvements at their home. A study by the Mortgage Advice Bureau indicates 75% of British people want to improve the energy-efficiency of their house.
However, 25% of respondents say they cannot afford to implement these changes because of the current cost of living. With so many people focusing on immediate bills and day-to-day living, long-term changes are not an option.
Ben Thompson, Deputy CEO at Mortgage Advice Bureau, said; “The Government’s ambitious plans to reach net-zero targets is having an effect on households, with an impressive number of people having the intentions to make their homes more energy-efficient. But despite this desire, consumers are being hit from all sides by the cost-of-living crisis, including soaring inflation and rising household bills.”
It is best you start the sales process in the right manner, and this means arranging for an appropriate valuation. At Trading Places, we are more than happy to provide this service, so contact us for more details.
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
Click here for an online Valuation (a starting point)
Click here for a Desktop Valuation (a more detailed option)
Click here to book a Home Visit Valuation (the full works)