Despite the anticipations and speculations surrounding the
UK General Election, its impact on the UK and Northampton property market has
been negligible.
Market trends, buyer interest, and property values have
remained steady, showing no significant fluctuations attributable to the
political climate. This stability suggests that factors such as economic
fundamentals, interest rates, and housing supply continue to play a more
crucial role in shaping the property market's dynamics than the election
results.
Northampton homeowners and buyers alike have maintained
their focus on these core elements, demonstrating resilience and continuity in
their property-related decisions. So, as the commentators predict a Labour
'Super Majority', could we see another ‘Boris Bounce‘ in the post-election
months like we saw in early 2020?
If we do,
what could it be called? The ‘Starmer Surge’?
Yet before
we pop the Champagne (or commiserate with the same stuff), it doesn't matter.
Why? Irrespective of who wins the election, there are bigger fish to fry.
Homeowners looking
to sell their properties will encounter increased competition, 'Starmer Surge'
or no 'Starmer Surge', as more homes will be listed for sale in the coming
months. The rise in mortgage rates has significantly impacted potential buyers'
incomes, reducing affordability and demand. This shift has led to price
corrections in previously buoyant regions, especially in the south. Local
factors such as reputable schools, amenities, and public services remain
critical for prospective buyers.
Avoiding the Overpricing Trap
Some estate agents
may advise homeowners to list their properties at inflated prices, only to
suggest a price drop months later. Large estate agencies can afford to keep
many homes listed unsold, whereas smaller agencies rely on consistent sales and
tend to propose more realistic prices.
I've
witnessed numerous Northampton homeowners being advised to place their
properties on the market at elevated prices despite their reservations. Over
time, with few viewings and no genuine offers, they reduce the asking price.
This initial overpricing often results in prolonged waiting periods and missed
opportunities to purchase desired homes. Homeowners may think they are immune
to such tactics, but the allure of a higher valuation can be tempting.
It's
natural to want to price your Northampton home ambitiously. While dipping your
toes in and testing the waters with a slightly higher price tag is perfectly
understandable (a practice we occasionally employ at our agency after
discussions with the home owner), refusing to adjust the asking price after a
few weeks of minimal interest can be costly. An overpriced home can stagnate,
leading potential buyers to suspect something is wrong with it. The longer it
remains unsold, the more stigmatised it becomes.
A lack of
early interest and viewings should be a clear signal to reconsider the asking
price. Being responsive and proactive is crucial if there are no serious
inquiries or offers within the first few weeks. By doing so, Northampton
homeowners can avoid the traps of a stale listing and increase their chances of
a successful sale and move.
The Current UK & Northampton Property Market
Landscape
If one
compares the number of UK homes sold year to date (YTD) in 2024 (459,682), it
is 11.3% higher than the YTD net sales in 2023, yet it is 22.9% lower than the
YTD figures in 2021.
However,
when we look at the number of homes for sale today, there are 694,281 UK homes
for sale compared to 481,242 UK homes for sale in May 2021 (44.3% lower).
Thus, the
number of UK net homes sales is lower, yet the number of homes for sale is much
higher. Delving deeper into the Northampton stats…
(Northampton
area = NN1 to NN7).
Roll the clock back to May 2019, there were 2,999 properties for sale in the Northampton area. One year on and the pandemic had hit, so the number of properties for sale reduced by 27.6% (to 2,171 Northampton homes for sale). Moving on to May 2021, and the number of Northampton homes for sale was now at 1,950 (which is 35.0% lower than the May 2019 number). However today, that figure now stands at 2,803, a substantial increase of 44% from the May 2021 numbers.
Remember that only 51.9% of the properties that have left UK
estate agents books since the 1st of January 2024 have sold and completed (the
remaining 48.1% came off the market, unsold). You can see that by only having
an almost 50-50 chance of actually moving home if you put your house on the
market, the importance of correctly pricing your home and having a great agent
to market it is so essential (surge or no surge).
Determining the Right Price for your Northampton
home
Northampton
homeowners can arm themselves with valuable information about the local
property market. Online platforms provide data on sold property prices in
specific areas, offering benchmarks. £/sq.ft figures are vital to compare
yourself against your competition. Additionally, the time properties spend on
the market can provide insights into how efficient an estate agent is, with
portals like Rightmove and Zoopla offering valuable data, plus my own Northampton
property blog.
When
selling, obtaining valuations and market appraisals from multiple agents and
critically analysing them is essential. Agents should provide evidence to back
their valuations, enabling homeowners to make informed decisions.
Rethinking the Selling Strategy
The Northampton
property market tends to shift collectively, like boats on the same tide. The
market remains manageable as long as homeowners aren't facing financial losses
and can manage an upgrade. Many assume continuous gains when selling their
home, but real profit only materialises when one parts with your final
property. This profit might not be realised directly but could be used later
for care expenses or as a legacy for children or grandchildren.
Once a
property is put on the market, it is crucial to focus on its online and offline
marketing journey. The initial four weeks provide insights into whether the
property is priced correctly, gauged by the number of web views on portals,
actual viewings, and offers received. One strategy employed by some savvy Northampton
home sellers is listing their property at a slightly lower price to spark more
interest and drive up offers.
Deciding to
reduce the listing price involves more than attracting buyers; personal
timelines and goals play significant roles. For instance, is there a deadline
by when the property must be sold? Could waiting a couple of months make a
difference? These considerations help in making thought-out, informed decisions
on asking price adjustments.
Boutique
agents, like our agency in Northampton, can offer a more authentic experience
and realistic valuations in a challenging market.
Switching Agents or Going Online?
In a slow
property market, patience can wear thin. If considering switching agents,
sellers should evaluate the current agent's efforts and communication
frequency. Multi-agency agreements are another option, though their popularity
has declined recently due to higher associated fees.
Online
agencies, with their fixed fees and remote operations, seem attractive.
However, their one-size-fits-all model can fail to capture the nuances of
individual properties, making them less effective in slower markets.
Renting as an Alternative
Renting out
unsold properties is gaining traction as rents rise. However, prospective
landlords should be cautious, considering growing mortgage interests, tax
restrictions, and tenant-related challenges. If this is a potential option, do
give our agency a call.
Final Thoughts
The current
Northampton property market is complex. ‘Surge or No Surge’: It's all about
being realistic with your asking price. The freeze on the Bank of England base
rates offers a welcome pause. While it won't create a frenzy like the mid-2020
stamp duty holiday, any possible drop in the summer or early autumn will be a
welcome respite.
With the
right strategies and awareness, Northampton home sellers can effectively
navigate these waters and ensure their property finds the right buyer at the
right price.
If you are
a Northampton property owner and this article has sparked any questions, do not
hesitate to call our office.
