House price update May 2017

Recently published data from the Land Registry may come as a surprise to some at the Halifax, who have suggested that demand is weakening and price inflation is falling, in a press release published on 8th May.

UK house prices are "stagnating" and have actually fallen in the last three months, according to the Halifax.  In the three months to April, prices fell by 0.2% - the first quarterly fall since November 2012. (source BBC)

However, according to data published by the Land Registry, house prices across Kirklees have risen over the last year, and local anecdotal evidence suggests that there is no reason to suggest that house prices are coming down, or growing at a slower rate.

Underpinned by exceptionally low interest rates, and a competitive mortgage market, asking prices and sales prices are visibly higher than a year ago.  Added to this is an RICS report suggesting that the number of houses on estate agents’ books are at the lowest level for a decade, creating greater demand.

The average house price in Kirklees is still way below the UK average.  Recent data reports a local average price of £139, 574, based on properties completed.  The national picture is very different, with an average UK house price of £217,502, a variance of 36%.

The property website Rightmove, in April 2017 reported that the “Price of property coming to market hits a record high, up 1.1% (+£3,547) to £313,655 this month”; creating a huge gulf between the average completed sale price and average asking price of new instructions.

One thing is for certain, and that is accurate property valuations are as important now as they have ever been.  Overpricing, or vanity pricing will lead to a house being on sale for longer, which may mean that it stagnates.  Even if the price is reduced, buyers may still be sceptical of a seller’s intentions.

Keeping the price and marketing of a property on sale constantly under review, refreshing the presentation, photography and wording of the adverts as sellers move through the year, is also very important, to maintain a fresh marketing approach.

Having had over 27 years’ experience of selling houses locally, James White at Belong is more than happy to provide assistance to anyone who is presently marketing their property, or looking to come to the market in the coming weeks.