The current property market conditions are fluctuating in various directions at this time. The media portrayal seems to suggest all out crash, whilst commentary from Industry specialists advises on a more realistic and in a lot of cases, positive outlook on the how things are going when people wish to sell or buy their homes. The property market in Daventry still remains strong with indications of nominal price adjustments in the average prices.
What’s Happening in the property market?
Whist no one can deny that the housing market has slowed due to a multitude of factors such as interest rates rising, inflation and cost of living. There are positives for sellers to take on board to ensure they can sell their homes for the best price possible.
A general slow down has happened, whereby fewer buyers have entered the market over the last 3 months. This has resulted in the stock available rising. When compared to last years dominance of demand over supply, it is clear that supply has now balanced out and in some regions, even overtaking the demand. This has resulted in prices lowering or at least becoming more competitive.
However, looking at the markets at a more local level, it is clear that many locations have shown to be holding their value to a reasonable degree. The property market in Daventry shows resilience with the average value for homes in the area only varying negatively in some cases by a few % (data from Rightmove). Numbers of price reductions in Daventry are not high suggesting that if the correct values are placed, buyer interest remains. The property market in Daventry also remains strong due to location, with its central position offering very easy access to the M1, M6, A5, M45 and the A361.
Report on the property market from the RICS
RICS (Royal Institute of Chartered Surveyors) recently released a statement via Property Industry EYE detailing a view of the general market –
The RICS Residential Market Survey, which measures the percentage of surveyors that are reporting house price increases versus declines, shows a reading of -68% in August from -55% in July – its lowest level since the financial crisis.
Additionally -47% of respondents noted a decline in agreed sales last month, up from -45% in July, with new sale instructions following a similar trend, dropping from -17 in July to -26 this time round.
Looking ahead, near-term sales expectations remain subdued, although the net balance has turned marginally less negative, at -38%, compared to last month’s reading of -45%. On a 12-month view, the trend in home sales is anticipated to flatten out, evidenced by the net balance moving from -25% in July to -5% in August.
Sales & Lettings
Looking across to the lettings market, conditions remain more positive than the sales market, with a net balance of +47 of survey respondents noting a rise in tenant demand (+59 in July). However, new landlord instructions fell slightly with a reading of -20 (-19 in July).
Given this mismatch between demand and supply, a net balance of +60% of contributors foresee rental prices being driven higher over the coming three months.
RICS chief economist, Simon Rubinsohn, commented: “The latest round of feedback from RICS members continues to point to a sluggish housing market with little sign of any relief in prospect.
“Buyer enquiries remain under pressure against a backdrop of economic uncertainty and the high cost of mortgage finance. Meanwhile, prices are continuing to slip albeit that the relatively modest fall to date needs to be seen in the context of the substantial rise recorded during the pandemic period. Critically, affordability metrics still remain stretched in many parts of the country.
Skilton & Hogg Estates – The Property Market in Daventry
David Bruckert of Skilton & Hogg Estate Agents commented – ” The conditions of each market place across England varies hugely and whilst there has obviously been a general slow down, it doesn’t necessarily mean the RICS’s view is completely true in all local markets. Also, they are mainly identifying a decrease in values rising above prior values achieved. This doesn’t always mean prices being achieved are lower. The buying public are clearly aware of the national news stating doom and gloom but ultimately people will always need to move for many reasons regardless of interest rate levels.
With regards the property market in Daventry – Critically, the role of an Estate Agent such as Skilton & Hogg, becomes so much more important. An honest, correct appraisal of value based upon factual data and an understanding of the market place is critical. If you price appropriately and have the support of your agent to mange your sale, negotiate professionally and be able to support your sale to ensure completion, you will achieve a good level of value in a timeframe that suits.
Looking to sell this year – Will the property market in Daventry help you?
If you looking to sell, Skilton & Hogg Estate Agents in Daventry can support all of your needs. For a free market appraisal call 01327 624275. If you are just thinking on things, maybe you’d like to try our free instant valuation tool. Not 100% accurate but it may give an idea – Free Instant Valuation (lead.pro). Alternatively, go straight to our Valuation booking page by clicking here – Book a free Market Appraisal & Valuation – Skilton & Hogg (skiltonandhogghomes.co.uk).
Source credit: The Property Industry EYE – Marco Da Silva & RICS.
