As
an estate agent working in Northampton, I believe it's crucial to provide a
comprehensive and realistic perspective on the local and national property
markets. This approach aims to dispel the misconceptions often perpetuated by
the media. Despite frequent reports predicting a housing market crash since
September 2022, the actual data reveals that the British and Northampton
property markets are holding steady.
National Homes for Sale
To
understand the health of the property market, we should first examine the
influx of new properties (listings) entering the market. In the second quarter
of 2024 (April, May & June), 450,486 properties were listed for sale across
the UK. This figure is higher compared to the 411,927 properties listed in Q2
2023 and the seven-year average (2017-2023) of 399,581 new properties.
The
average price of a UK property coming onto the market in Q2 2024 was £454,223
compared to £438,551 in Q2 2023.
The
number of new listings is a critical indicator of market health. During the
2008 financial crisis, the number of properties entering the market in Q1
doubled compared to the previous year of 2007, leading to an oversupply and
subsequent price drops. Therefore, monitoring this metric helps gauge market
stability.
A
simple method to assess market trends involves using Zoopla or Rightmove. By
tracking the number of properties for sale and those sold subject to contract
(SSTC) weekly, you can calculate the ratio of sold to available properties. An
increasing ratio indicates a strengthening market, while a declining ratio
suggests a slowdown (although don’t forget there is a seasonal factor to this).
For a more detailed analysis, you can break this data down by property type and
price range.
National Sales and Price Bands
In
Q2 2024, 308,969 properties were sold stc in the UK. This is much higher than
the 269,989 properties sold STC in Q2 2023 and above the seven-year Q2 average
of 299,324.
The
average price of a UK property sold stc in Q2 2024 was £369,373 compared to
£367,030 in Q2 2023.
Examining
listings and sales by price band provides further insights. In Q2 2024:
- 33.9%
of new listings were priced up to £250,000, yet this segment accounted for
40.4% of sales.
- 40.3%
of new listings were in the £250,000 to £500,000 range, and 40.3% of sales
were also in this price range.
- 13.8%
of listings were priced between £500,000 and £750,000, yet only 11.6% of
sales occurred in this band.
- 5.7%
of listings were priced between £750,000 and £1m, yet only 4.2% of sales
occurred in this band.
- 6.2%
of listings were priced £1m +, yet only 3.6% of home sales occurred in
this band.
This
data highlights a stronger performance in lower-priced properties, suggesting
that affordability is driving the market.
Market Dynamics and Pricing Strategies
Pricing
realistically from the outset is essential in the current market. In Q2 2024,
there were 225,745 price reductions on the 673,973 properties on the market,
indicating a need for initial realistic pricing to avoid subsequent price cuts,
which can deter potential buyers. Also, it is interesting that the average
number of properties for sale in Q2 in 2023 was only 605,667, a growth of 11.3%
in homes for sale.
Overall,
despite the continued higher mortgage rates and economic uncertainties, the Northampton
property market in terms of house sales has now surpassed the pre-pandemic
activity levels, yet sellers should still aim to price their properties
competitively to attract buyers where there are more homes for sale.
Northampton Property Market
Specifics
Locally,
in Northampton (covering NN1-NN7 postcodes), 2,179 properties were listed in Q2
2024 with an average asking price of £356,150. The £250,000 to £300,000 price
range saw the highest number of new listings, with 378 properties.
Sales
in Northampton during the same period totalled 1,641 properties, with an
average sale price of £327,471. The most active price range for sales was the £200,000
to £250,000 bracket, with 308 home sales agreed.
First-time
buyer properties are leading the recovery in Northampton, mirroring the
national trend where lower-priced homes are more popular.
Conclusion
Ultimately,
decisions about moving home should be based on personal circumstances rather
than market conditions alone. If you are contemplating selling or buying in Northampton,
we are available for a no-obligation chat to provide honest advice tailored to
your situation.
Feel
free to share your thoughts in the comments, and let's discuss how best to
navigate the Northampton property market in 2024.
If
you have any questions or need further insights, do not hesitate to reach out.
