With
Rightmove announcing a national drop of 0.3% in average asking prices in
August, some are asking if the steam has been let out of the property market. Yet
with the gains we have seen in the last 12 months, is this just a minor bump in
the road? Alarm bells normally ring when new homeowners coming to the market
for the first time are having to lower their initial asking price when compared
to the market as a whole.
So,
what is actually happening in the national and local property market to asking
prices and the number of properties for sale, and where does that leave Neath
homeowners and Neath landlords?
1 in 7.4 homes already on the market today have reduced their asking price in the last two weeks
That
means new sellers bringing their property to the market for the first time, are
having to curtail their initial asking price to remain competitive. Normally,
this should ring alarm bells, particularly when this is the first time this has
happened in 2021. Therefore, it’s vital to ‘look under the bonnet’ of the
figures and see what, exactly, is happening locally.
Average asking prices for Neath homes are 3% up compared to July
However,
that figure hides some interesting anomalies – the average asking price of Neath
detached houses are 1% lower than in July (that doesn’t mean they have
dropped in value by that much – just the headline asking prices) whilst
apartments/flats have seen the average asking price rise by 15% in the last
month.
So,
if this is what is happening to Neath asking prices, what about the number of
properties for sale. Looking nationally first…
there
are currently just 285,970 properties for sale in the UK, which means 1 in 67
British homeowners are presently on the market – interesting when compared to
2005, it was 1 in 13.5 homeowners on the market.
With
such little supply of properties for sale nationally, demand remains robust. Yet
the property buyers in the market are being a little more reserved with the
offers they are making compared to the Land Transaction Tax holiday frenzy
times seen earlier in the year. They will pay handsomely, and yet top dollar won’t
offer the ‘crazy price’ levels some Neath buyers were offering in the spring –
hence the recent reduction in asking prices to a more realistic level.
| Number of Neath properties on the market | |||||
| Apr-21 | May-21 | Jun-21 | Jul-21 | Aug-21 | |
|
Neath Properties for Sale |
146 | 152 | 144 | 146 | 151 |
|
Neath Rental Properties Available |
9 | 6 | 9 | 7 | 8 |
Looking at the movement in the available properties for sale and to rent in Neath over the last few months, an interesting picture arises.
The
number of Neath properties for sale (and rent) is still at record lows when
compared to the 30-year long term average.
The
choice for Neath tenants is limited as well, as many tenants aren’t moving
home. With the additional increase in demand from 1 in 10 Neath homeowners
choosing to go into rented accommodation (albeit temporarily) Neath landlords
with exceptional properties are getting decent rents, as discussed in a recent
article I wrote about the level of rents in Neath.
With
the current level of Neath properties for sale being around 40% to 50% below
the long-term average (depending on the type of Neath property you own), it
means when a Neath property is properly priced, given the intense competition,
often it comes down to the position of the buyer and not the price they are
prepared to pay.
When
I say, “position of the buyer”, I mean, do they have a chain, do they have to
sell their own property to buy another property?
Many
Neath house sellers are selling their home before they buy. Selling before you
buy can be a fruitful approach in a fast-moving property market. That does mean
your own purchaser will have to demonstrate a certain amount of patience whilst
you wait for the right home to come on to the housing market.
However,
because it is currently taking on average 19 weeks between sale agreed and
exchange of contracts, with mortgage providers and solicitors taking their time
due to the backlog, this often allows you to potentially play catch-up if it
takes a couple weeks to find the right property for you.
Many
home sellers are going even further by selling their Neath home first and then going
into transitional rented accommodation. This subsequently puts them in pole
position when their forever home comes up for sale as they have no chain. Although
this takes a lot of determination and resilience, it does mean you will be in the
very best position when the property of your dreams comes up.
The
choice they say, as always, is yours!
If
you would like a chat about the Neath property market and the best thing for
you and your personal circumstances, do drop me a line. In the meantime, what
are your thoughts on the current Neath property market? Do share in the
comments.
