How to buy... in this seller’s market
Half the shelves are empty in this seller’s market so make sure you are in prime position to buy. Sharon Dale reports.
A recent report by Home.co.uk had the headline “Half the shelves are empty” and it refers to the lack of stock on estate agents’ books and the fact that demand for homes now outweighs supply. This means that it is a sellers market, at least for now.
The latest data in Home.co.uk’s Home Asking Price Index reveals the total stock of property for sale in England and Wales is 40.9 per cent lower than in January 2021 and 50.1 per cent less than in January 2019.
Asking prices across England and Wales show a small rise this month, up 0.2 per cent since December, while the nominal annualised average growth remains unchanged at 6.9 per cent.
Prices in the West Midlands show an exceptionally bullish increase of 1.5 per cent over the past month. The greatest price correction was in the South East, where values fell -0.8 per cent. In Yorkshire, there was a year-onyear increase of 3 per cent and a monthly rise of 0.1 per cent, taking the average house price to £227,503.
Home.co.uk has concerns about house price growth when taking into account general monetary inflation. Only four English regions and Wales show price increases above the latest inflation waterline of 7.7 per cent.
Home.co.uk director Doug Shephard says: “Prices of fuel, gas, timber, food, transport and metal are all on the rise and inflation is now gobbling up any real gains or profits across the entire economy.”
Rightmove statistics concur that there is a shortage of homes for sale. Tim Bannister, the portal’s director of property data says: “Early-bird sellers who
,got themselves ready to come to market this month are now benefitting from the busiest start to the year ever recorded by the Rightmove, with the number of prospective buyers enquiring about homes up 15 per cent on this time in 2021.”
It’s an amazing time for those who want to sell, above all for those who want to cash out and downsize.
He also adds words of warning to the complacent: “Almost 40 per cent of people enquiring about a home who have a property to sell say that they are yet to put it up for sale. In the current market, where they are competing against other buyers who are able to move more quickly, this is likely to mean they’ll miss out on the home they want.
“To put yourself in the best possible position to proceed, you should become a ‘power buyer’, by making sure your current home is on the market or preferably sold subject to contract first, before starting the search for your new home.”
Andrew Beadnall of Beadnall Copley estate agents, which operates in the sought-after
Golden Triangle, adds: “The last time I saw a market similar to this was in 1987 during the Thatcher era when the economy was hot.
“It’s an amazing time for those who want to sell, particularly those at the higher end of the market who want to ‘cash out’ and downsize.”
He cites the performance of a bungalow on the market in Pannal, near Harrogate, which had an asking price of £485,000 and has just been sold for substantially more after 62 viewings and 10 offers.
Cash is king and buyers who have not sold their home or who are in a chain aren’t getting a look-in, according to Andrew, who adds that the situation will change: “People who want to move haven’t put their own homes on the market because they can’t find anything they want to buy but they are realising that they are part of the problem. We are now going out to value more properties so that is an encouraging sign.”
Rightmove figures also show an increase in home valuation requests. In the first working week of 2022, they were up 44 per cent on the same period last year,
For now, here are some tips on how to get moving in the first quarter of 2022.
■ Estate agents put their heads in their hands every time a wouldbe buyer says: “I haven’t put my house on the market yet but when
I do it will sell immediately.” It is the height of arrogance. Your home may well sell to the first person who looks at it but the deal will take weeks to go from offer to completion, by which time a chain-free buyer will beat you to it. Put yourself in prime position by selling your own property.
■ Don’t be rude. Sellers can afford to be sensitive so now is not the time to make very low offers or remarks about what you feel needs updating/changing.
■ Don’t rely on property portals. If you are set on a particular area then register your interest with local estate agents and ask them to let you know when a suitable property becomes available. This way you may get to view it before those relying on portals move in for the kill.
■ If you don’t have to be rigid about location, expand your selfimposed search area. Property
Post readers have found their dream home in the pages of this supplement and often it is in a location they had never thought of looking at. Spread the net wider and you may find the perfect place elsewhere. Get a map of Yorkshire and have fun discovering places and properties you never knew existed.