With Summer Behind Us, How Strong is the Premium Property Market in Hertfordshire
Whilst the days are getting shorter and the temperature drops, Putterills reviews if the heat is still at the higher end of the market following the second month of a new government and the first month of a 5% base rate.
The number of new listings, properties for sale, and sales agreed upon was all up from August last year and the six-year average.
This is all very positive news and highlights the incredible rebound in the market compared to the peak of interest rates this time last year.
However, it is not all plain sailing, with price reductions, properties withdrawing, sales falling through, and sellers changing estate agents all on the rise.
The above is clear evidence that we are operating in a very price-sensitive market with an equal balance of supply and demand.
As you can see from the below image, stock levels are at a 10-year high, but not to the extent that would cause an oversupply of properties to the market, thus resulting in significant price drops.
Buyer demand has bounced back following the drop in interest rates throughout the course of the year and with encouraging signs that they will continue to do so slowly but surely is helping people return to the market with a new found confidence.
However, the current interest rates are still nowhere near the record lows of a few years ago and this has meant that any sellers pricing above the market are sitting stagnant and unsold.
Whilst demand is up on last year, stretches on affordability are still a challenge to buyers and if they don’t see value in a property for sale, there is more choice for them to choose from instead compared to previous years.
In conclusion, we are in a very evenly balanced market right now and those that are pricing competitively from the outset and are marketed correctly will find a buyer relatively quickly and for a decent price as well.As the days grow shorter and the temperature drops, I want to assess the current state of the housing market following the second month of a new government and the implementation of a 5% base rate.
The number of new listings, properties for sale, and sales being agreed upon has shown an increase compared to August last year and the six-year average. This is encouraging and reflects a significant rebound in the market from the peak of interest rates a year ago.
However, there are challenges to consider. Price reductions, properties withdrawing from the market, failed sales, and sellers changing estate agents are on the rise. These trends indicate that we are operating in a price-sensitive market with a delicate balance between supply and demand.
Although stock levels are at a 10-year high, this is not currently to the extent that an oversupply of properties would lead to significant price drops.
Buyer demand has surged following the drop in interest rates over the year, and there are promising signs of continued growth, which is instilling confidence in people to re-enter the market.
