Market Update – July 2021
By Steve Cook – Partner Clarke Gammon
As the dust settles after the frenzy of activity during the run up to the 30th June Stamp duty holiday cut off, we take stock, look forward and consider how the property market will look in the coming months.
It would be unfair to say that the stamp duty holiday has been all hype, as many buyers have benefitted from the savings, up to £15k in some cases, but the stamp duty holiday has not been the primary driver of the booming property market.
The foundation for the majority of the boom, is simply the desire of a great many people to move to a home, perhaps in a slightly less urban location, and that offers more space, both inside and out.
It is this ‘search for space’ trend that has created the surge in buyer activity, properties are often being snapped up as soon as it comes on the market, pushing asking prices up, and occasionally increasingly sale prices higher by competing buyers. Such is the shortage of supply over demand.
Valuing property
I am, on a daily basis, called in to value property and having to guide clients through the minefield of property values. In an unpredictable market, where competing buyers can push the price above what could reasonably be justified, this is never straightforward.
As in this scenario, these competing buyers create an artificially inflated comparable value, which we often subsequently see being down valued by conservatively minded surveyors carrying out mortgage valuations.
My advice on value is always based on comparable locally ‘achieved’ sale prices and my 30 years of selling property within the area. The objective is to pitch the asking price at a level that will achieve the best possible price for our client. Often referred to as the ‘Goldilocks’ effect, not too high that buyers won’t be interested and not too low that creates false hope for those that can’t afford it.
The asking price is critical, my advice to clients is to pitch the asking price fairly, at a price they would be happy to accept. Not to over price or to pitch it low in the hope of creating a bidding war. In the current market, a property will find its true value, as ultimately a property is worth what a buyer will pay for it.
Is now a good time to sell
Is a question I’m often asked, this is of course, a leading question for an estate agent… Although it would be difficult even for the most pessimistic to argue against this. Certainly when, at a time when there are many more buyers than properties available, creating the best sellers market we have experienced in many years, when buyers competing against each other can push already high prices even higher, now is undoubtedly the best time to sell your home we have seen in many years.
THINKING OF SELLING? It’s never been a better time to sell…
Steve Cook
If you require any further help or advice, please contact me at our Liphook Office.
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