Local Market Report – Jan 1st – July 31st 2017
As we approach the traditional summer holidays we can see and try and predict how the local property market is shaping up to perform in the second half of 2017 based on the previous 6 and 12 months and property trends that are appearing.
The UK market is quite diverse from region to region, even City to City and often Village to Village and sometimes reading overviews can be somewhat confusing even if a UK trend on house price growth within a whole year period is often correct when analysing afterwards through the land registry.
So, let’s try and evaluate what we are seeing locally between our 2 offices covering a wide 10-mile radius and assess the current barometers of the local housing market.
In truth, quite often every 6 month periods trading is quite the opposite from each other’s. From July to Dec 2016 we saw a leap in transactions towards the end of the year, with higher than average price increases being achieved, with the effect of property availability still seeing demand outstrip supply.
In the last 6 month’s we have had various ‘feel good’ and ‘feel uncertain’ economic factors thrown into the mix, which more often than not, causes at least a blip in transactions as people tend to ‘hold fire’. The June election provided just this for 2017, and has somewhat halted the good momentum that was being achieved, with for the first time in a few years, strong property stock coming onto the market, increasing and therefore allowing people to speculate and proceed with the marketing of their property, with more confidence that they would find their future house without waiting too long.
So, a positive and proactive first and second quarter for the area and in all price brackets with First time buyer’s filling the void left by investors still reeling from the stamp duty hike in 2016. The amount of surplus new build development property that we are now seeing coming through in Boorley Green, Horton Heath, Fair Oak, Swanmore and Hedge End also provide confidence, and whilst not helping the second-hand market in terms of competition, has not hindered it either, and we believe must have had a positive effect on prices and chain building and completing, a big issue when there is generally no stock avalaible leaving everyone waiting to find their forward purchase. Time is not on your side with property transactions and speed over the line is very important to ensure a positive outcome.
So, June brought a shock and possibly a stutter to the market, but as high unit sales have proven in our offices, transactions if not actually activity has maintained and even increased, so we are quietly confident there is no reason for this to be unhinged in the next quarters trading leading into Autumn.
August with school holidays can be quieter generally, but with new instructions still positive and on the up, we predict September and October to be high selling months in 2017, to look any further might be unwise though.
I hope this has provided our clients and followers with a reflection on the local market to date and I will report back again to see if we were right, in September.