Demand Is Currently Exceeding Supply In Certain Areas
We have been saying it to our customers for a while now but our opinion has been backed up by recent figures released.
The asking prices throughout the UK have increased to an all- time in the month of May. This is an increase of nearly 1% from the previous month. The main reason for this is the lack of stock on the market. Subsequently demand is now exceeding supply hence the reason for the increase in asking prices.
Managing Director of FastMove Christian Armitage gave his thoughts. ‘In May we sold 4 properties within 24 hours which is great news for our customers. Buyers are currently acting like birds of prey. They are waiting and waiting for properties matching their criteria. Once they see a house they like they are swooping, booking a viewing and making their offer without considering things. This type of behaviour illustrates they have been waiting for a while and also indicates the prospective buyers are worried about when the next property matching their criteria will be available. However, be careful because of the lack of stock not all agents are been 100% honest when valuing customers properties, they are over inflating the value. Buyers are not silly they will not pay over inflated prices they are still happy to wait. If you are looking to sell your property and are realistic about the price I am confident we can sell it for you in a decent timeframe, I cannot speak for other agents. At the end of the day the estate agent still needs to be pro-active and effective in introducing the right types of buyers for your property.
Mr Armitage’s opinion is backed up with statistics released by Rightmove. Even though asking prices are up the number of sales agreed in 2018 is actually down by 5.4%. One of the main reasons for this will be due to over inflated valuations.
According to Rightmove we have seen the asking prices increase as much as 4% in the Midlands and Wales which is a substantial increase. In the East of England and Yorkshire asking prices increased by 1.2%.
The only places to see asking prices fall was the North East., London and the South East. Here we saw a decline of 0.3%, 0.2% and 0/1% respectively.
A number of property experts have pointed out that different areas in the UK are performing almost like different Countries. If you are thinking of selling your property it’s important to concentrate on your area, not the statistics of the whole UK.