The property market in Kenilworth continues to show positive signs with numbers of transactions remaining steady through the month of June and into July.
Whilst sales transactions are steady there continues to be stress however on prices. Rightmove’s most recent Property Price Index suggests an annual increase of just over 2%, down slightly on the previous month. I would suggest this is a fair reflection of prices in Kenilworth currently year on year.
First Time Buyers are contributing 1 in 4 sales nationally, but that figure is far lower in Kenilworth. In June it was as low as 1 in 7 at our office and cost of entry into the market is certainly a factor for these buyers. However, prices aside, what we are experiencing is indicative of the current economic climate. In a market of negligible price fluctuation if you are not already on the property ladder you can watch from the side lines and wait for the right house to become available. The thinking being that if I miss this one…the next one along could be cheaper.
Warwickshire has the shortest time to achieve a sale nationally with 54 days. Whilst the lowest, it remains higher than we have seen previously for the area. We have seen a significant change in the habits of buyers over the last 12 months and this will have contributed to the slowdown in the time taken to achieve a sale. With reduced pressure from First Time Buyers and Buy to Let Investors potential sellers are organising their onward purchase before bringing their own house to market. I remember the days when sellers would instruct you to only allow proceedable buyers to view. Whereas now sellers are actively encouraged to allow buyers, not on the market, to view our properties.
Finally asking prices. Nationally 81% of sales achieved in June were lower than the asking price. This is an interesting statistic as it is a trend you expect to see in a toughening market. The time to sale should remain steady, whatever the market conditions because estate agents advice should reflect the market. In a market of fewer buyers the advice should be to be competitive in your asking price, and aim to achieve it. However, agents start to flatter sellers with unobtainable prices in order to secure the property for sale. This approach can in fact cost the sellers money in the long run.