We have reported plenty of positivity in the market place for vendors in August and September and coming into October we were anticipating to see a similar trend continue until the New Year. Whilst it has been a productive month we have certainly seen a downward trend in sales and activity since the beginning of September 2014 AND October 2013 – this is the first time in a while that a comparable month with last year has seen sales levels decrease (-17%). However, we have had instructions to market 20% more property in October 2014 which should see levels of sales increase in the November market place.
As tradition suggest the October market is always quieter than September and as we approach December we suspect it will continue this way – viewings are down by 35%, sales agreed are down by 16% and total value of property sold has gone down by 33%. As stated above, sales levels have also decreased compared to October 2013 which has been a bit of shock considering the record breaking year we have had so far, this we feel is down to an accumulation of reasons, Mark Ellis the Halifax housing economist says:
“Annual house price inflation may have peaked around 10 per cent. A moderation in growth looks likely during the remainder of 2014 and into next year as supply and demand become increasingly better balanced.”
At Barons Estate Agents we have certainly seen viewing numbers level out this month to numbers we were achieving this time last year and we have actually achieved the identical level of offers entered by Barons negotiators – this would back what Mark Ellis from Halifax has said and if this continues we feel vendors may have to become more realistic on price in comparison to earlier in 2014.
Scott Corfe, director at CEBR 9 (Centre for Economics and Business Research) adds: “Although interest rises are expected to be very gradual, with rates remaining much lower than before the financial crisis, prospective buyers are likely to be startled by the first such increase – leading many to hold off from making purchases and this too will lead to lower prices.”
But he continued to stress that the UK is “not anticipating a crash’ and that the market is adjusting after ‘getting ahead of itself at the start of 2014”
With the general elections and the Bank of England potentially increasing national interest rates in 2015 our view is that the market is leveling with a more realistic market growth expected next year.
Statistics aside, Barons have advertised in the Hampshire life this month and we are also undertaking further modifications to our bespoke office – we invite you to visit us at the latter part of the month and we will upload pictures.
We hope you have enjoyed this article and we look forward to next month.
Report by Matt Rawlings.