Posted: 8 May 2014 by Higgins Homes
Research by property intelligence group Hometrack has indicted that current property market conditions have resulted in buyers paying the highest proportion of the asking price of a property than has been the case for more than a decade. For example, in April of this year the average buyer was paying 96.7% of a property asking price. The main reason for this is fairly simple: demand.
There is still much more demand for purchasable properties in the UK than there is supply and, with more and more people looking to get onto the housing ladder, those properties that are available are being much more competitively fought for. The result is that people are being forced to pay more as the value is driven up by the lack of availability.
In April there was a 3.3% rise in the numbers of people registering with estate agents but the number of new properties being put on the market rose by only 1.9%. In order for the supply of new properties to be able to meet this level of demand, the numbers being put up for sale would need to nearly double. The price of the typical home rose by 0.6% in April, reflecting the fact that there is more demand for those homes that are being sold.
The amount of time that properties are remaining on the market is another reliable factor for the fluidity of the housing market and the extent of demand and this time period dropped to 6.3 weeks, which is the lowest it has been since June 2007. Whilst the figures for London continue to outperform just about every other area the rest of the country is very much moving in the same direction. Of course, there are some considerable advantages to this current situation if you are looking to sell your home, or you already have it on the market.
It now takes much less time to find a buyer for a property and buyers tend to be more reliable, as there are now fewer other options out there. The fact that a higher percentage of property prices are now being met also means that most sellers will end up with a far larger amount of money to spend on their next property purchase than would previously have been the case, putting sellers in a better position as buyers too. If you have recently sold your home or you are planning to and you're looking for a new house in the UK then Higgins Homes has a lot to offer. Take a look at our website and check out some of our lovely new homes today.