It’s been another quite surprising month so far this month. If you were under the impression that we would all be preparing, as estate agents, for hibernation then, regardless if that was the plan, the fact is that we are pretty far from bedding down in the straw of our lovely, cosy cave.
However, before I let you know what we have been seeing ‘at the coalface’ of the property market, I’ll go through the now customary run-down of the main property-related stories that have been appearing in the Press and letting you know whether, in practice, this is what we have been seeing in the geographic areas that we cover.
Press Coverage of the Property Market in October
The economic news this month has been dominated by recent reports, at the time of writing, that the UK economy has returned to growth for the first time in four quarter year periods. The UK economy’s GDP rose by 1% in the quarter from July to September. http://www.bbc.co.uk/news/business-20078231 Of course, the main thing that this growth was attributed to was the Olympics. So what does this mean for the property market exactly?
Well, it’s been suggested by some that UK property prices track GDP. This means that when the economy is performing well, prices go up with the growth of the economy and, when it’s not performing well, prices fall. Seems pretty logical, really, since people are better-off and less likely to sit on their cash or hold-off from making big financial decisions when the economic outlook is bleak.
However, it’s not just prices that will be affected by confidence inspired by the general economic climate, it’s also the volume of properties selling. In a good economy jobs are more secure and the likelihood of people being able to continue to pay their mortgages on a new home are also more bullet-proof. Put yourself in the position of someone who is considering buying a home and wonder whether they are more or less likely to move and make a huge financial decision if they think that their job is potentially under threat in the coming few months…
It’s of course only one quarter of a year’s results and one swallow doesn’t make a summer. But these results seemed to pleasantly surprise economic commentators. The longer-term position will become clear in the coming months but it’s certainly very positive news and is certainly backed-up by what we have been seeing happening in the property market, in terms of the level of purchasing activity and the robustness of property prices.
What Have We Been Seeing Happening in the Local Property Market? Some Brilliant News for Property Buyers and Sellers, Honestly!
For the second month in a row, I was astonished by the figures that my team provided for me for this part of our monthly property market update.
It’s a bit of a given that, in the current property market and in the last few years, less properties sell than go on the market (sales versus ‘listings’).
However, for another month in a row, at the time of writing our team have sold more properties in October than they have ‘listed’. And they have handled the purchase of more properties for our clients than they have ‘listed’.
These figures are honestly astonishing to me, in terms of volumes. Last month was the first time in MOV8’s 5 years in business that I have experienced this ratio of sales to listings. For it to happen again, in a month that is still traditionally strong in terms of the number of properties listed, is quite incredible. Of course, we’d like to say that these figures are down to our unbeatable marketing package! But the general market has to take some of the credit as well!
It’s very, very positive news if you are planning on selling a home. The best news is that these properties are ranging in value from £60,000 to well over £500,000. So it’s not just specific to, for example, the New Town or higher-value properties, whose market sector has been more ‘robust’ in the last few years. It’s also good news and can give you some confidence if you are planning on moving home.
As our market share increases every month such that we are one of the consistently largest ESPC solicitor/estate agency firms, these figures don’t need to be taken with a pinch of salt as being unrepresentative of the marketplace as a whole and they are probably mirrored by the general market statistics in the areas we currently concentrate our efforts: Edinburgh, the Lothians and the Scottish Borders.
In terms of prices, the story remains the same as it has been for the last couple of years: property prices remain robust. We are not seeing run-away price increases, of course, but we aren’t seeing prices dipping either.
So is This a Good Time of Year to Consider Selling Your Property?
As we near the end of October, many potential property sellers become reluctant to put their properties on the market. However, in a period of the year where demand is outstripping supply in a way that has not been seen earlier in the year, we would still advise that November and December are a great time to be thinking of selling.
If you have any doubts about this, we have put together a special marketing package for anyone who decides to sign-up with us in November and December, just to give you that little bit of extra confidence! For more information about this, please just give our Valuation Team a call on 0345 646 0208 or drop an email to [email protected] to find out what is on offer!
I look forward to catching up with you at the end of November with, let’s hope, some more positive news!