Surrey & Hampshire Property Market Update – September 2024
By Steve Cook – Partner Clarke Gammon
In the monthly survey of its members, the Royal Institution of Chartered Surveyors (RICS), the professional body of the majority of UK surveyors, reports that for the first time since October 2022, their key metric of price growth moved into positive numbers.
Whilst this is a welcome and positive signal for the property market, the strong headline belies a very small, although perhaps significant increase.
As a key measurement of the RICS monthly survey, the House Price Balance compares the number of professional members who report seeing rises in house prices against those who see falls. A net balance of +1 per cent reported price rise in August, up from a -67 per cent for the same time a year ago.
The RICS report also confirms a sizable 14 per cent balance of professionals predicted a steady increase in house prices over the next three months. As surveyors are not generally known for their optimism, this is an unusually positive position for those normally seen as conservative in their views on property value.
The survey noted an increase in buyer demand with more buyers active in the market, possibly due to the Bank of England’s cut to the base rate, as well as an increase in the supply of properties coming onto the market.
The optimistic outlook of the RICS members comes as many lenders cut their mortgage rates in recent weeks, and after the Bank of England cut the base rate from 5.25 per cent to 5 per cent at the start of August, the first reduction of 2024.
More positive news from Land Registry
The quarterly Land Registry House Price Index shows that house price growth is at a 14 month high. The Land Reg index is the most accurate of the various industry indexes, as it’s based on actual prices paid, it is though, always a little behind the curve as prices are based on the previous quarter.
The latest Land Registry Index is based on property completions from April – June 2024, and given that transaction periods can be lengthy, the result is that properties in the report could have sold 8 or 9 months ago and only completing now.
This lag can be confusing for sellers, particularly when media publish headlines like ‘House price growth at 14 month high’(*) when in reality, the numbers are now already very out of date.
(*) The Land Registry Index confirms that as of June 2024, the average house price in the UK is £287,924. Property prices have risen by 0.5% compared to the previous month, and risen by 2.7% compared to the previous year. Keeping house price inflation at a 14 month high…
The Correct Asking Price is Key
It can not be overemphasised how important realistic pricing is in the current housing market, despite the the undoubtably busy Autumn Market, sellers should regard the mixed signals about future house prices as speculation.
It is easy for sellers, buoyed by outdated and optimistic speculation, to feel inclined to overprice their homes. However, experience shows that overpricing inevitably leads to a longer time on the market, reduced viewing interest and price reductions. By setting a more realistic price from the start, sellers attract serious buyers more quickly and secure a smoother transaction.
The first few weeks of a property coming to the market is often its best chance of selling, buyers are smart, they know the values of property having emersed themselves and researched the market. If a property is overpriced, it will not attract the same interest and will likely miss the initial peek of buyer interest, with little viewing interest, overpriced properties generally stall and sit on the market unsold.
There are estate agents that will play on the seller’s hopes of achieving a higher price, advising owners to ‘give it a try’. This strategy, in a price-sensitive market, does not work, so don’t be tempted, price correctly, find a buyer and be in a position to find your dream home.
See our most ‘Recently Sold Properties’.
Recently Listed homes
Here are a selection of some of our most recently listed homes for sale –
House for Sale in Guildford – Guide Price £1,800,000
New House for Sale in Guildford – Guide Price £1,395,000
House for Sale in Rake – Guide Price £1,145,000
House for Sale in Liphook – Guide Price £975,000
House for Sale in Haslemere – Guide Price £795,000
House for Sale in Haslemere – £485,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
Considering a Move this Autumn?
We have strong demand for properties in and around the towns and villages covered by our offices in Guildford, Haslemere and Liphook with many motivated buyers looking for a new home.
If you are considering a move please feel free to contact any of our offices, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
Why not try our instant online valuation tool?
Steve Cook
Partner Clarke Gammon
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