October 2018 – market update.
SO, its that time of year again, people are now thinking of moving in the new year and we are noticing a slight decrease in the amount of properties coming on…. or are we?
I tend to use Zoopla alot as a point of refrence as all the main agents tend to be on both Rightmove and Zoopla (you can find more about this and why its important here
Zoopla is very open with facts and figures when it comes down to the market and the current condition of the market.
So i went back and looked at October 2017 and then October 2018 to see what differences there are, and my findings were interesting.
In October 2017 there were 49 new listings on Zoopla. so these are ‘new’ property listings…. BUT, in October 2018 it was…….. 49!!! – yes the same. so that shows the market isnt any busier or quiet then the year before (phew…).
What is interesting though, in October 2017 there were 20 properties that had reduced their prices but in October 2018 there were 49!!!!
now, if we look at property prices, between August 2017 and August 2018 there was less than a 1% increase in prices, but importantly, not a drop in prices.
If there was a drop in prices that would give us some sort of indication that properties are reducing therefore properties need to do the same to keep up with the market, but that simply is not the case.
In October 2017 there were 20 reductions… BUT in October 2018 there were 36!!!
What it does show is that properties are going on for more than they are worth and as a result having to reduce, this is either because the owners expectations are too high, or the Estate Agent valued it too high (i feel the latter – you can read more about this here).
So there is nearly double the amount of reductions in properties prices as we are nearing half way into the last quarter of 2018.
In my opinion, this is a bad thing for sellers BUT a great thing for buyers, a property reducing is a sign of a committed seller, it proves they are really trying to sell so as a result reducing the property to get more interest so they can move on, so i would keep an eye on these properties as they are the ones your more likely to get at a great price!
so there you have it. less than a 1% rise in house prices in the past 12 months but 80% increase in reductions.