Reading or watching the news at the moment will certainly leave most people quite confused about the current state of the housing market. Various statistics are being released at the beginning of a new month, but they don't seem to be saying the same things. Here are a few of the latest headlines:
Rightmove reports in their latest House Price Index that "Prices Jump while agents scramble for stock".
While the BBC reports that "UK House Prices Lose Momentum".
Given such conflicting headlines who is a house-hunter supposed to believe? First of all, remember that London is a very different market than the rest of the UK and most of these headlines are referring to national trends and not the trends affecting the London area.
If you delve further into the BBC article you will find the statement "In January, house prices in England & Wales rose fastest in London, where they went up by 3.9%."
The Rightmove House Price Index supports the assertion that London is enjoying a rather more buoyant market than the rest of the nation with February seeing a 5% rise in the nation's capital. The annual change in prices is up 10.3% on last year's figures.
The index reveals that "Sellers appear to be hoping for a prosperous new year, and are asking an average of 3.2% more than last month. This average rise of over £7,000 is surprising given the difficult UK and global economic picture. However property in popular locations remains in short supply, supporting upwards price pressure, as seen in London where the average asking price this month is the highest we have ever recorded."
So can sellers or would-be sellers in London be safe in the knowledge that the equity in their biggest investment is as "safe as houses"? Miles Shipside, commercial director of Rightmove warns that, "Sellers are starting to appear in greater numbers, but they must realise this market is more akin to the mortgage-rationed times of the 1970s and 1980s than to more recent times of relatively easy mortgage availability. For individual sellers it's hard to grasp the bigger picture and they rightly hope they will find a buyer who can get the required share of the rationed finance that is available. This works after a fashion while the number of sellers remains limited. However if sellers return to the market in larger numbers the current upwards price pressure will not be sustainable with the restricted number of buyers."
The moral of the story is that it might be best to put your property up for sale now while stocks of property are still limited and buyers are having to act quickly to snap up the available stock. Call Northfields now to arrange your free valuation on 0208 840 6666 or request a valuation online by clicking here.
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