Market Comment and election thoughts from Phillip Bishop
27 April 2017
Managing Director Phillip Bishop
The property market continues to show strong activity and demand. In some quarters the market is more price sensitive, but the overall demand from buyers is strong across the area in which we operate.
Many of our buyers are those downsizing, or more correctly described as moving for lifestyle reasons, often wanting a similar size property but perhaps one that is lower maintenance and closer to amenities.
Perry Bishop and Chambers sold very well in the first quarter of 2017, in particular during March, with April activity marginally slowing over the Easter period as we have come to expect over the last few years, but this has since improved.
On most occasions in the run up to a General Election, inevitably there are some ripples in the housing market. This year we suspect will be similar, but as the Election is likely to be more about giving the current government a stronger mandate we think the market effects will be small and fairly limited and most of those looking to move are motivated enough to make things happen.
Interestingly the price of properties coming to the market nationally is at a record high and sales agreed are at the highest at this time of the year since 2007.
First time buyers are showing particularly strong activity since the dilution of the buy-to-let market and the tax/stamp duty changes. These changes are now helping to assist first time buyers - reduced competition has led to increased activity in this sector.
At Perry Bishop and Chambers the number of new properties coming to the market year on year is 6% up and sales are 9% up with the average asking price in the South West now being just over £300,000. We have a quarterly price increase of 2.8%, which slightly contrasts with an annual reduction in London of 1.5%.
The total number of properties available at Perry Bishop and Chambers is now 10% higher than 12 months ago, suggesting there is more choice for buyers and sellers for their onward purchase.
In addition, the average time to agree a sale has dropped from 79 days in January to now just 65 days, which is as we would expect as the normal spring and pre-summer market gains momentum.
Anyone seeking further information regarding the housing market or considering a possible move should contact Perry Bishop and Chambers for advice and guidance where needed.