I was recently reading a report by Rightmove that a North South Divide has started to appear in the UK property market – so I wanted to see if Medway was falling in line with those thoughts. In the North, there are 7.12% less properties on the market than 12 months ago, whilst in contrast, in the South, there are 14.7% more properties on the market than 12 months ago.
With the decline in the number of properties for sale in the North compared to 12 months ago, that means the North is more of a sellers’ market. However, on the other side of the coin, there is a significant rise in buyer choice in all of the Southern regions, showing there are signs of a buyers’ market, which in some markets is a driving force for a buyers’ market and some downwards price pressure.
So, looking closer to home at asking prices and the number of homes on the market. In the South East region, according to Rightmove, the average asking prices of new to the market properties are 1.2% higher than 12 months ago and 0.1% higher over the last month. Now I must stress, this is asking prices – not what is happening to actual property values. Also, regionally, there are 20% more properties on the market than 12 months ago.
Even closer to home, overall, the number of properties and building plots for sale in Medway has increased by 13%, going from 260 properties for sale a year ago to 295 properties for sale as I write this article, meaning Medway does in fact match the regional trend.
Looking at the individual types of Medway property, you can quite clearly see the different markets within Medway. The two sets of figures that stand out are the increase in Semi-detached homes for sale, rising 38% and the decrease in Apartments by 12%.
Properties for Sale 12 months ago
Properties for Sale Today
Detached Property in Medway
Semi Detached Property in Medway
Terraced/Town House in Medway
Apartments in Medway
(NB There are a handful more Building plots and other types of property that can’t be placed into the four category’s ... and it’s those that make up the total numbers in the paragraph above the table)
Although these figures don’t tell the whole story because in certain areas of Medway, certain types of properties (particular locations and Primary school catchment areas) are in short supply. This has caused some frustration with buyers of those types of properties with this lack of supply, which in turn has sparked some very localised asking price growth within those hot spot areas, although sometimes to levels where sellers optimism turns into silly over the top asking prices.
This means the property sticks, which isn’t sustainable, therefore as a consequence, there are certain parts of the Medway housing market with upward asking price movements being offset in part by intermittent asking price reductions where home owners or their estate agents have been over optimistic with their initial marketing asking price.
What does this mean for homeowners and landlords in Medway?
If you are planning to sell your home or buy to let investment, the key for determined sellers is to set your asking price correctly from the start. It’s so vital to be competitive to attract buyers. Everyone has access to three main property portals (Rightmove, On the Market and Zoopla) so can easily compare your property against similar ones. When you do search these portals, make sure you ask the website to show properties that are sold subject to contract as well to check what properties are selling for in your neighbourhood. Unless you have something highly unusual or unique, this perhaps isn’t the best market to set an optimistic asking price in hoping to find someone who would pay that silly price.
And if you are buying in Medway? The numbers of buyers are lower than a few years ago, although those buyers that are in the market have become quite serious. The times of time wasting “carpet treaders” (estate agency slang for the same type of people car dealers call tyre kickers) are long gone. Those buyers that are in the market are real buyers, wanting to buy, but only at the right price. We live in a 21st century society that is “time-poor” so nobody is wanting to even view a house, let alone pay over the odds if they believe the asking price is too high. So, if you are buying, do your homework, ask plenty of questions of the agent, find out the motivation of the sellers and the real reasons behind why they are moving ... and you might just bag a good deal?
One place for more information is my Medway Property Market blog. If you are a landlord or thinking of becoming one for the first time, and you want to read more articles like this about the Medway property market together with regular postings on what I consider the best buy to let deals in Medway, then it is well worth reading. You can also email me at firstname.lastname@example.org
If you are in the area feel free to pop into the office which is based at Station Road, Strood, Kent, ME2 4WQ