More Bridgend
homes are now coming up for sale.
This is excellent news for Bridgend homebuyers and Bridgend
landlords because as properties
are no longer flying off the
shelf as they did last year, the number of properties available
to buy is beginning to return to long-term averages.
This means there is greater choice for Bridgend buyers and
this will reduce the pressure on Bridgend
house prices and return us to a more normal Bridgend housing market for buyers (and
sellers).
The average UK estate agency now has 25 homes for sale, the highest level of properties on
the market since December 2021
(when it was 21 homes for sale).
However, properties
per estate agency brand is not the best judge of the property market.
Let’s look at the
actual Bridgend stats, which tell a slightly different story.
- Bridgend Detached Homes – Dec 2021, 45 available and today, 122 available – a
rise of 171% - Bridgend Semi-Detached Homes – Dec 2021, 40 available and today, 118 available –
a rise of 195% - Bridgend Terraced/Town Houses – Dec 2021, 9 available and today, 32 available –
a rise of 256% - Bridgend Apartments – Dec 2021, 7 available and today, 9 available – a rise of
29%
Overall, an increase of 177% – year on year.
(The data for Bridgend
is calculated by looking at all properties and plots for sale within a 2-mile
radius of the centre of Bridgend).
This growth in
properties for sale has been seen across all areas of the British Isles. This
is important because when there is a more significant availability of homes for
sale, this diminishes the increasing pressure on house prices.
So how does a low
number of properties for sale make such a huge difference?
Coming into the early
spring of 2022, the levels of properties for sale were low (as seen from the
low December 2021 stats above). It was ‘Hobson’s choice’ for buyers, so
they had to pay top dollar to secure their Bridgend home.
The value of Bridgend
properties that had their sale agreed upon in the early spring of 2022 (and
completed their sale in September 2022) is 13.9% higher than those Bridgend properties
that had a sale agreed upon in the spring of 2021.
The number of
properties estate agents have to offer buyers is increasing; this will boost the
choice for Bridgend buyers, meaning we will move into a more balanced Bridgend housing
market.
Nevertheless, it’s vital
that Bridgend sellers place their properties, when they go onto the market, in
line with what Bridgend homebuyers are prepared to pay, given the current hit
to their buying power initiated by higher interest rates.
Bridgend house prices are not expected to crash in 2023, yet they will be lower than in 2022.
If you are buying
and selling in the same property market, it doesn’t matter what happens to
property prices.
Also, some might
say waiting for Bridgend house prices to drop will enable them to grab a
bargain.
Well, sorry to
‘rain on your parade’, but you should read my recent article that discusses
what would happen if Bridgend first-time buyers waited for Bridgend house
prices to drop. If they waited, because interest rates are rising, the extra
mortgage payments would cost them a lot more than the savings made on the
purchase price. (Send me a message if you want a copy of it).
What has an effect
on the value of your Bridgend home is the number of properties for sale at any
one time compared to the number of buyers. When there is an over-supply of
homes for sale, prices go down, and with reduced demand, house prices will go
down. So how do the stock levels of properties for sale compare to the past?
If you recall at
the start of the article, I stated the average UK estate agency had 25
properties on their books now. In 2018/9, that average was 36 properties for
sale (and for added comparison, the long-term average, since records began in
2016, is 49 homes for sale).
As you can see,
whilst stock levels have grown, we are a long way off the long-term average.
A great way to
determine what will happen to the property market is by measuring that stock
level (i.e. the number of properties for sale). Check once a month and
see how many properties are for sale. Let me break that down for Bridgend
specifically and how you can judge the market from your sofa.
There are 283 properties
and plots for sale in Bridgend now. To give context, the long-term 16-year average
is 449 properties and plots for sale, yet in the credit crunch of 2008, it
reached 952 properties and plots for sale at one point.
I envisage some component
of scarcity to persist in the Bridgend property market, meaning whilst the
house prices that were being achieved in the spring of 2022 won’t be replicated
in 2023, it also won’t fall dramatically next year.
The incentives and impetuses
to move home have changed in the last six months and will continue to do so into
2023.
As I have written
before, there are a larger number of mature homeowners in their 60s and 70s
downsizing to help with heating bills, whilst the desire for more space means younger
families will continue to look for new homes to live in, in 2023.
If younger
20-somethings can access the Bank of Mum and Dad for mortgage deposits, they
will also carry on buying. This is especially true because double-digit rental
inflation makes renting quite expensive compared to buying (even with the
increased interest rates).
These are my
thoughts on the Bridgend property market this week. Do put in the comments (or
send me a message) your thoughts on the matter discussed and any other
property-related topic you want some advice and opinion on.
Thank you in
advance …
