The UK’s property market panorama has skilled a major shift over the past couple of years.
In October 2021, there have been 424,809 properties on the market within the UK. That now stands at 664,780, an increase of 56.5%. Trying on the variety of property gross sales within the UK in October 2021, 111,229 properties had been offered topic to contract (stc). In October 2023, that determine dropped to 88,737 properties offered stc, a discount of 20.3%.
But, then I believed to myself, this drop in property gross sales might have simply been an October 2023 factor, so I appeared on the year-to-date (YTD) figures for each 2021 and 2023.
Trying on the variety of property gross sales, the variety of properties offered stc by the YTD to the top of 31st October 2021 within the UK was 1,252,108. YTD to 31st October 2023, the variety of property gross sales reached simply 933,690, a discount of 25.44%.
With the variety of properties approaching to the marketplace for sale within the UK growing, contrasted towards a decline in home gross sales, we discover ourselves in a peculiar surroundings relating to the property market.
Earlier than I talk about that, I need to have a look at the image nearer to house to see if the identical is happening regionally to see if the numbers match the nationwide image.
Nearer to house in Lancaster
The Lancaster stats (for LA1 and LA2 mixed) are as follows.
In October 2021, there have been, on common, 514 properties on the market within the Lancaster space.
In October 2022, there have been, on common, 599 properties on the market within the Lancaster space.
In October 2023, there have been, on common, 769 properties on the market within the Lancaster space.
Meaning there are…
49.6% extra Lancaster houses are available on the market at present than two years in the past
Subsequent, let me have a look at property gross sales.
In October 2021, 143 properties offered (stc) within the Lancaster space.
In October 2022, 108 properties offered (stc) within the Lancaster space.
In October 2023, 107 properties offered (stc) within the Lancaster space.
25.1% fewer Lancaster houses offered in October ‘23 than in October ’21
So, what does this all imply for Lancaster owners?
The surge in out there properties results in elevated selection for potential consumers, which is a welcome aid from two years in the past when there was restricted selection for homebuyers. But, on the flip aspect, it’s growing competitors amongst sellers, making it tougher to face out in a crowded market.
64.2% of Lancaster owners had been profitable in promoting and transferring house within the final 12 months
(Fascinating whenever you evaluate that with the nationwide common of 54.87%). Nonetheless, two years in the past, that determine was 80.6% in Lancaster.
Lancaster, even with its wealthy historical past, transport hyperlinks and nice faculties, has all the time been a horny vacation spot for households and professionals alike. However with the rise in out there properties, our distinctive promoting propositions could possibly be overshadowed if we don’t place our houses accurately.
The hazard of overpricing your Lancaster house
Right here’s the place it will get fascinating. Within the huge database of property insights I’ve gathered over time, there’s a recurring theme. When owners worth their properties too excessive, particularly in a saturated market, it has dire penalties.
- Fewer Viewings: Consumers, particularly in at present’s digital age, are extra knowledgeable than ever. They evaluate houses on the portals, and if yours appears overpriced in comparison with related properties, they may not even give it a re-assessment, not to mention view it.
- Longer on the Market: Overpriced Lancaster houses have a tendency to remain available on the market longer. And the longer a house is available on the market, the extra potential consumers marvel, “What’s mistaken with it?”.
- Property Turns into ‘Stale’: A Lancaster house available on the market too lengthy loses its attraction. It turns into ‘stale’, and even if you happen to cut back the value later, the preliminary buzz round a brand new itemizing is misplaced. You’re then enjoying catch-up, typically resulting in promoting at a much-reduced worth than if it was proper from the outset.
- Missed Alternatives: Because the property stays unsold, owners would possibly miss out on beneficial mortgage charges for his or her subsequent buy or a dream house that’s up for grabs.
The facility of proper pricing your Lancaster house
There are various advantages to accurately pricing your property from the beginning. Not solely does it appeal to extra potential consumers, nevertheless it additionally will increase the chance of a number of provides, doubtlessly driving up the ultimate sale worth. It additionally means a faster sale, lowering the uncertainty and stress accompanying the promoting course of.
Ignore the doom mongers
You will need to do not forget that while we’ve got seen a discount in property gross sales in 2023 in comparison with 2021, the property market is in respectable form. It have to be remembered that complete UK home gross sales YTD to the top of October 2023 are solely 94.0% of the 2017/8/9 YTD common. So, while it’s robust on the market – it isn’t as unhealthy as some newspapers recommend. Once more, I need to stress the significance of lifelike pricing.
What ought to Lancaster owners do?
If you happen to’re contemplating promoting your property in Lancaster:
- Analysis the Lancaster Property Market: Perceive the present market dynamics and see the place your property stands. Take a look at what’s on the market and offered stc. Keep in mind, analysis exhibits that properties in Lancaster promote for inside 1% to 2% of the ultimate asking worth.
- Search Skilled Steerage: Have interaction with an skilled property agent who is aware of Lancaster’s property market. Their recommendation on pricing could be invaluable.
- Be Sensible: Keep in mind, the aim is to promote your Lancaster house, not have it linger available on the market. An attractively priced house typically results in a sooner sale and a greater general end result.
The panorama of the Lancaster property market is ever-changing. Whereas the rise in new properties on the market presents challenges, it additionally provides alternatives for many who navigate it correctly.
My message to Lancaster owners is to not fall into the entice of overpricing your property on the market. With the proper technique, backed by analysis {and professional} experience, we are able to profit from the present situation and guarantee your property finds its preferrred consumers.
Please bear in mind, at JDG we’re right here to all the time assist!
Thanks for studying
Michelle x
