Putterills Regional Market Report for Hertfordshire - Summer 2024
As we enter June 2024, the latest UK House Price Index reveals a stable yet dynamic housing market in Hertfordshire. Below is a comprehensive summary of the current market conditions, with key insights for both buyers and sellers. We have also included pie charts to visually represent the statistics, making it easier to understand the trends.
Below is a comprehensive summary of the current market conditions, with key insights for both buyers and sellers. We have also included pie charts to visually represent the statistics, making it easier to understand the trends.
House Prices: A Static Outlook
Annual house price inflation in Hertfordshire is currently at -0.1%, indicating a broadly stable market. This slight decline shows that while house prices aren't soaring, they are also not experiencing significant falls. This stability is primarily due to an increase in housing supply, which balances the market.
Implications:
For Sellers: Realistic pricing is crucial to attract buyers in this stable market.
For Buyers: The stable pricing environment means there is less urgency to rush purchases due to fear of rapidly increasing prices.
Regional Variations
House price inflation varies across Hertfordshire, with some areas experiencing modest increases while others face slight declines. For example, areas like Watford are seeing a positive inflation rate of +1.5%, while St Albans faces a -2% decline. This demonstrates a varied market within the region.
Implications:
For Sellers: Sellers in regions with positive price inflation can expect better returns, while those in declining areas need to be more flexible.
For Buyers: Buyers in areas with falling prices might find better deals, whereas in areas with rising prices, they may need to act quickly.
Sales Activity: Rising Momentum
Sales activity in Hertfordshire remains robust, with a 12% year-on-year increase in sales agreed. North Hertfordshire has seen a 15% rise, compared to 5% in East Hertfordshire.
Implications:
For Sellers: A healthy market with active buyers means sellers can find buyers more quickly.
For Buyers: Increased sales activity indicates competition, requiring quick action on suitable properties.
Supply Dynamics: Increased Availability
The number of homes for sale in Hertfordshire is at its highest in eight years, up 18% from last year. The market now holds £20 billion worth of homes for sale, marking a 22% increase.
Implications:
For Sellers: With more competition, it's important to differentiate properties through competitive pricing and effective marketing.
For Buyers: The abundance of homes provides more choice and better negotiation opportunities.
Market Confidence and Pricing
About 30% of homes currently listed in Hertfordshire were also on the market in 2023 but didn’t sell due to high mortgage rates. Many of these properties have reduced their asking prices by over 5%.
Implications:
For Sellers: Setting realistic prices from the outset is essential to avoid prolonged market times and potential price reductions.
For Buyers: Buyers benefit from reduced prices, offering potential bargains and greater negotiating power.
Election Influence
The upcoming general election on July 4, 2024, introduces uncertainty. Historically, elections slow down market activity, but current projections suggest only a minor impact this year.
Implications:
For Sellers: Be prepared for possible delays in new sales agreements and plan listings accordingly.
For Buyers: Existing transactions are unlikely to be affected, but new buyers might face delays.
Future Outlook
The increased supply is expected to keep house prices in check throughout the year in Hertfordshire. While price inflation might remain flat, the steady flow of homes ensures ample choices for buyers, supporting overall market health.
Implications:
For Sellers: Focus on making properties attractive through improvements and competitive pricing.
For Buyers: Stable prices allow for well-considered decisions without the pressure of rapidly increasing prices.
In Summary
The Hertfordshire housing market in May 2024 is characterised by stability in prices, rising sales activity, and increased supply. These factors create a balanced market with opportunities for both buyers and sellers. As we approach the general election, it will be important to monitor how political developments influence market dynamics. For now, the market remains steady, with a focus on realistic pricing and sustained buyer interest.
For further details or personalised advice, feel free to contact Putterills. Our team is here to help you navigate the current market conditions and make informed decisions.