Taking advantage of the sellers’ market?
Grant Brooks – MD Edwards Estate Agents
As the days start to draw out and we begin to see the evening getting lighter, our thoughts turn to the prospect of springtime and the warm weather to come.
Unlike the previous couple of years, in normal times, this has been the time of year many of us start planning a home move. Although, the pandemic, lockdowns and last year’s crazy property market postponed the moving plans of a good number of Dorset’s home owners. 2022 however, looks set to be ‘moving year’ for those previously disappointed.
In our January news article, we talked about ‘Moving in 2022’ the issues around supply and demand and what you need to know to make your move as stress-free as possible.
In our ‘Pro’s tip’, we recommended to give yourself the best chance of success, was to firstly look around to see what’s available in your price range, then put your home on the market, and when you receive an acceptable offer, then you are in a great position to go and find that home of your dreams.
Finding a property first, then trying to find a buyer for your own property, before the property is sold to someone else is very unlikely in this market. Sadly, disappointment is more often than not the outcome.
Taking advantage of the sellers’ market
Of the local sellers that took the initiative and marketed their property in the first weeks of the new year, many have been successful in achieving a sale already and often at or above the asking price.
There is often little motivation for sellers to put their homes on the market in the early part of the year, with poor weather and dark evenings. Homes are seen by owners as unphotogenic at this time of the year with gardens not looking their best.
This is of course true, but that doesn’t put off motivated buyers that are eagerly waiting for their dream home to come to the market.
As the property market still suffers from a lack of supply of new stock coming on the market, there remains strong buyer demand. And for the right property, competing buyers can push prices beyond the asking price.
Our Wimborne office was recently instructed to market a small development of two town centre apartments in Mill Lane, Wimborne, with over 40 buyers viewing the properties, both sold within 48 hours of the launch at the full asking price. Similarly, again from our Wimborne office, having taken instructions on a new exclusive gated development, currently under construction, in Holtwood, Wimborne an ‘off plan’ sale was agreed at the full asking price within a few days of the development launch.
These examples are not uncommon, and whilst current stock levels remain lower than expected, property owners can continue to take advantage of the sellers’ market as long as strong buyer demand remains.
The Spring Market
As we eagerly await the warmer weather of Springtime, and with it the anticipated positive influence this has on the property market, as home owners feel the moving bug more strongly. With the probability of more properties coming to the market, the current advantage of the strong sellers’ market are likely to become less.
Our advice to clients remain, make an early start and take maximum advantage of the favourable sellers’ market conditions.
Don’t just take our word for it… In the recent ‘House price index’ from property portal Rightmove, they confirm the current advantages for the early sellers –
- The number of buyers enquiring about homes is 15% higher than the same time last year.
- The number of available homes for sale per estate agency branch drops again to a new record low of just 12.
- As a result, competition amongst buyers is almost double what it was at this time last year.
It is often difficult to relate national house price inflation to anything locally relevant, it is however, a good indicator of local trends. The national ‘House price index’ confirms the average price of property coming to market was up 0.3% in January, which is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016.
More locally, we have seen house prices increase over the past 12 months and certainly, in individual circumstances, these have been significant when buyers compete for the same property.
Local Dorset market
There are definite signs that home owners are preparing to market their properties, with the number of valuation appointments we have carried out over the past 4 to 6 weeks at record levels for the time of year.
Equally, the picture nationally reflects our own experience, with the ‘House price index’ confirming that there are early signs that more property choice is on its way. With the first working week of 2022 being the busiest start to the year ever for people requesting agents to value their homes.
The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020.
Selling in 2022?
If you are one of the many considering a move in 2022, make an early start and take advantage of the current very strong sellers’ market.
Thinking of moving and would like some help or advice, please feel free to give me a call at our Ferndown Office anytime.
Until next month, happy house hunting.
Thanks for reading