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The UK's property market landscape has experienced a significant shift over the last couple of years.
In October 2021, there were 424,809
properties for sale in the UK. That now stands at 664,780, a rise of 56.5%. Looking
at the number of property sales in the UK in October 2021, 111,229 properties were
sold subject to contract (stc). In October 2023, that figure dropped to 88,737
properties sold stc, a reduction of 20.3%.
Yet, then I thought to myself, this drop in
property sales could have just been an October 2023 thing, so I looked at the
year to date (YTD) figures for both 2021 and 2023.
Looking at the number of property sales,
the number of properties sold stc by the YTD to the end of 31st
October 2021 in the UK was 1,252,108. YTD to 31st October 2023, the
number of property sales reached just 933,690, a reduction of 25.44%.
With the number of properties coming on to
the market for sale in the UK increasing, contrasted against a decline in house
sales, we find ourselves in a peculiar environment regarding the property
market.
Before I discuss that, I want to look at
the picture closer to home to see if the same is occurring locally to see if
the numbers match the national picture.
The Medway stats (for ME1-ME5/7/8 combined)
are as follows.
In October 2021, there were, on average, 1,680
properties for sale in the Medway area.
In October 2022, there were, on average, 2,199
properties for sale in the Medway area.
In October 2023, there were, on average, 2,659
properties for sale in the Medway area.
That means there are …
58.3% more Medway homes are on the market today
than two years ago
Next, let me look at property sales.
In October 2021, 476 properties sold (stc) in
the Medway area.
In October 2022, 378 properties sold (stc) in
the Medway area.
In October 2023, 438 properties sold (stc) in
the Medway area.
7.9% fewer Medway homes sold in October ‘23
than in October '21
So, what does this all mean for Medway
homeowners?
The surge in available properties leads to
increased choice for prospective buyers, which is a welcome relief from two
years ago when there was limited choice for homebuyers. Yet, on the flip side,
it's increasing competition among sellers, making it harder to stand out in a
crowded market.
58.4% of Medway homeowners were successful in
selling and moving home in the last 12 months
(Interesting when you compare that with the
national average of 54.87%).
Two years ago, that figure was 73.1% in Medway.
Medway, even with its rich history,
transport links and great schools, has always been an attractive destination
for families and professionals alike. But with the increase in available
properties, our unique selling propositions could be overshadowed if we don't
position our homes correctly.
The danger of overpricing your Medway home
Here's where it gets interesting. In the
vast database of property insights I've accumulated over the years, there's a
recurring theme. When homeowners price their properties too high, especially in
a saturated market, it has dire consequences.
1.
Fewer Viewings: Buyers,
especially in today's digital age, are more informed than ever. They compare
homes on the portals, and if yours seems overpriced compared to similar
properties, they might not even give it a second look, let alone view it.
2.
Longer on the Market:
Overpriced Medway homes tend to stay on the market longer. And the longer a
home is on the market, the more potential buyers wonder, "What's wrong
with it?".
3.
Property Becomes 'Stale': A Medway
home on the market too long loses its appeal. It becomes 'stale', and even if
you reduce the price later, the initial buzz around a new listing is lost.
You're then playing catch-up, often leading to selling at a much-reduced price
than if it was right from the outset.
4.
Missed Opportunities: As the
property remains unsold, homeowners might miss out on favourable mortgage rates
for their next purchase or a dream home that's up for grabs.
The power of right pricing your Medway home
There are many benefits to correctly
pricing your home from the start. Not only does it attract more potential
buyers, but it also increases the likelihood of multiple offers, potentially
driving up the final sale price. It also means a quicker sale, reducing the
uncertainty and stress accompanying the selling process.
Ignore the doom mongers
It is important to remember that whilst we
have seen a reduction in property sales in 2023 compared to 2021, the property
market is in decent shape. It must be remembered that total UK house sales YTD to
the end of October 2023 are only 94.0% of
the 2017/8/9 YTD average. So, whilst it's tough out there – it isn't as bad as
some newspapers suggest. Again, I must stress the importance of realistic
pricing.
What should Medway homeowners do?
If you're considering selling your home in Medway:
1.
Research the Medway Property Market:
Understand the current market dynamics and see where your property stands. Look
at what is for sale and sold stc. Remember, research shows that properties in Medway
sell for within 1% to 2% of the final asking price.
2.
Seek Professional Guidance:
Engage with an experienced estate agent who knows Medway's property market.
Their advice on pricing can be invaluable.
3.
Be Realistic: Remember, the
goal is to sell your Medway home, not have it linger on the market. An
attractively priced home often leads to a faster sale and a better overall
outcome.
The landscape of the Medway property market
is ever-changing. While the increase in new properties for sale presents
challenges, it also offers opportunities for those who navigate it wisely.
My message to Medway homeowners is not to fall
into the trap of overpricing your home for sale. With the right strategy,
backed by research and professional expertise, we can make the most of the
current scenario and ensure your home finds its ideal buyers.
To all Medway residents, happy selling and
here's to a prosperous property future!
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