Living in Leytonstone and keeping a keen eye on the property market, you could be forgiven for thinking the world of house buying and selling was all a little fickle.
Why? Because last month property prices in the area had taken a real slump – 3.3 per cent down on the previous month and a 7.7 per cent annual drop. Do bear with us: this month householders in Transport for London’s (TFL) Zone 3 are basking in the fact their homes have accrued in value most in the capital. And it’s all there in black and white in online property portal Rightmove’s House Price Index.
Feb house prices in the Leytonstone area up 6.7 per cent on Jan
House prices in Leytonstone and surrounds have, in fact, gone up a huge 6.7 per cent over the previous month, bringing the current cost of the average house here to £601,992. It’s still down on an annual basis but at a much more palatable two per cent.
So why the big difference? Miles Shipside, Rightmove director and housing market analyst believes it’s all to do with the fact that fewer owners in the Leytonstone area are putting their property up for sale. This in turn reduces supply so that sellers can keep prices high, without the fear of having to reduce them in the event their property fails to attract the attention of keen would-be buyers.
“End of the boom prices normally re-adjust more quickly if there is an over-supply of sellers trying to exit their property investments. However, the lack of new listings in the typically pricier more central locations indicates that some would-be sellers are holding back, preventing a glut of competition from forcing prices downwards,” he said.
Sellers in Zones 1 to 3 shouldn’t be too confident however. Despite not wishing to burst their ‘happy bubble’ right now, Shipman warned: “Unless you have an extra-special property you may have to sacrifice some of the substantial price gains of the last few years to attract more buyer interest and effect a speedier sale.”
Property market in general back on track
Whether prospective house buyers were hibernating in their current homes last month, or just didn’t have the inclination to go looking, it’s all changed now. Rightmove actually recorded the largest activity ever on their portal this month, with visits from home hunters hitting the 1.4 million mark.
Every region in England with the exception of the South West saw a rise in house price values (prices in Cornwall etc stayed the same). Sellers in Wales and Scotland too benefitted from overall prices rises.
There are more sellers on the market too, compared to this time last year, pointing to an increasingly more buoyant market. At two per cent it’s a small increase, but a rise nonetheless.
Overall, homes in the Midlands areas – both east and west – are selling fastest at within 63 days, despite a five per cent annual increase on property prices there. In London the average time to sell a property is around 83 days.
The current weather will perhaps slow things down a little, and it certainly doesn’t feel very spring-like at the moment, so do wrap up warm and take care in the icy conditions.