Thu 20 Jun 2019
One of the key factors of the health of the Rutland property market is the number of properties for sale at any one time. The issue with housing is that when demand goes up (unlike with a chocolate bar factory who can add a couple of hours overtime to increase supply/production to satisfy demand), it takes a good 18 months to 2 years from planning permission to someone moving into a home. I have talked at length (and proved) in previous articles that we are still not building enough homes in the long term in the Oakham / Rutland area.. yet for the short term, a good indicator is the number of properties for sale and how long they have been on the market.
How long a property has been on the market is important as a guide to how the property market is performing – potential buyers can always find this information on the Rightmove and Zoopla listings (if you don’t know where – drop me an email or message and I can let you know).
So, let’s have a look at what is happening in Oakham, both in terms of the number of properties for sale and how long they have been on the market compared to a year ago, then discuss what that means for the current state of play of the Oakham property market.
Therefore, to begin with let’s look at the number of properties for sale in Oakham compared to a year ago:
Interestingly, you can see there has been a proportional increase of 112% in semi-detached properties on the market in Oakham, yet a 6% reduction in apartments... overall in the last year there are 45% more properties on the market in Oakham, compared to a year ago.
Now, let’s look how long they have been on the market:
Interesting to see that the biggest jump in the number of days on the market is semi-detached houses, from 65 days to 126 days - demand and supply working again. Also, the length of time an average Oakham property has been on the market has increased by 14% in the last year.
So, what does this all mean for local landlords and homeowners looking to buy and sell?
Well, if you are thinking of selling, as the number of properties on the market has increased and the length of time Oakham properties are on the market has also increased – you have to be mindful that realistic pricing is the key to get the property sold. If you are a buyer, that means you find yourself in a better position to negotiate a good deal on your Oakham property purchase.
There is an argument to suggest that property buyers see excessive days on the market as an indication that the seller is becoming desperate to sell because the property hasn’t sold. Buyers are also mindful to believe that there might be something wrong with the home, a defect that caused other buyers to pass it up. This can concern them when they view the property – if they view it at all, as that possible and perhaps wrongly imagined defect is on their minds, even if it is sub-consciously.
Normally, both assumptions are wrong. A property can languish on the market for several reasons; the most common reason for a property sticking on the market is overvaluing or overpricing. In an effort to get the property on the market, some estate agents may have deluded the seller into believing the property was worth more than the property market will bear. Don’t get me wrong, if you don’t ask, you don’t get and homeowners naturally want to get the best price for their home, and therefore, test the market. Yet, if you aren’t getting a steady stream of viewers after a few weeks, then that testing can back fire. You see, by setting the asking price too high to see if they can find someone to pay that inflated price, then finding there is nobody in the market that will pay the price, here lies the biggest trap for house sellers on keeping the inflated asking prices for too long.
Sellers can also get stuck on an asking price and they are willing to wait out the market until it catches up to what they want for their property – yet we aren’t in that type of property market at the moment. Consumer champion ‘Which’ said that if you have to reduce your asking price by 5% or more, it adds an extra 64 days to the sales process meaning you might lose the property of your dreams.
Also, I have seen countless times, house sellers insist on an inflated asking price go on to reduce 12 weeks or so later, yet buyers think there is something wrong with it so the homeowner gets fed up and accepts a lower offer to get the property sold, whereas if the house seller had gone onto the market at the right asking price, they would get much nearer to what they deserve for their property.
The style and manner in which a home is marketed is also vital to a successful sale, and Lottie and I can give you real examples of where strategic, bespoke marketing helps homeowners to achieve a higher price in a quicker timeframe.
So, if you are looking for a bargain to buy all the property portals (Rightmove, Zoopla and On The Market) allow you to search and sort by the length of time on the market as well as the asking price, so who knows – there could be a bargain waiting for you!
What do you think to the current Stamford and Rutland housing market? Were you trying to sell your home for too high a price and been forced to reduce for a sale? How long has your home been on the Stamford and Rutland property market for? We'd love to hear your views - call us on 01572 497 070 or email me here.