Worcester, Droitwich & Malvern Market Update – June 2021
Newly listed properties are flying off the shelves. The majority (78%) of agents in the latest Dataloft subscriber poll said that homes, once listed, are selling in less than 28 days, locally our average is 24 days.
At 45 days, the average time taken to sell a property across the UK in April is a record low (Rightmove) and is 16 days quicker than the April average of 62 days (2015–2019).
22% of agents state the majority of homes are selling in less than a week, Zoopla reporting the number of homes selling within the first week of marketing is currently at its highest ever level.
With a particularly strong database of proceedable buyers, we are finding more and more sales are being agreed before properties hit the portals, emphasising the benefits, if you are a buyer, of being registered a with a top quality full service agent such as Nicol & Co who can help you with your property search.
LOCAL MARKET ROUNDUP
Over the last twelve months, there have been 3477 sales in Worcestershire, reflecting the impact of COVID-19, 32% less than the previous year. 35% fewer transactions in Droitwich resulted in 423 sales and 514 sales in Malvern represents a lower reduction in activity of 25% year on year.
Average house prices have increased across the county with Malvern rising to £266.8K and Droitwich to £266k. In Worcester, where 41.6% of the sales took place, the average sales price is still 12.8% lower at £232K.,
The Lettings picture has been changing over the last twelve months with a 15% increase in the Worcester average to £722. Malvern is 4.7% higher at £756, 2.4% above the overall Worcestershire average of £738, which has also risen by 11%; Droitwich Spa which continues to show healthy growth remains highest at £910.
Transaction levels in April fell by 36% compared to March, no doubt due to the surge in sales completed prior to the original SDLT holiday deadline. The HMRC report 117,860 properties were sold in April, the highest April tally since 2007 and 23% higher than the five-year average (2015-2019).
According to Rightmove nearly one in four (23%) properties that had a sale agreed in March had been on the market for less than a week, with properties selling faster in the first two weeks of April then ever previously recorded, 45 days from marketing to SSTC.
The Bank of England forecast the economy will grow by 7.25% over the course 2021, as restrictions are lifted. The economy shrank by 1.5% during Q1 but grew 2.1% in March and is set to recover to pre-COVID levels over the remainder of the year. Interest rates remain at 0.1%
Consumer prices are rising at their fastest rate since the onset of the pandemic in March 2020. The annual rate of UK inflation more than doubled in April to 1.5%, from 0.7% in March. Inflation is predicted to rise as restrictions ease and consumers start spending across the economy.
The unemployment rate dipped to 4.8% in the three months to March a slight fall from 4.9% in February. The ONS report UK job vacancies have hit their highest level since the start of the pandemic, many employers seeking to recruit as lockdown measures ease.
Tenant demand is rising substantially. For agents in the lettings market, the busy season is approaching. Analysis of tenancy start dates based on data from the past 5 years indicates the market starts to accelerate in June, with nearly one third of all tenancies starting between July and the end of September.
The demand for rental properties increased significantly in the three months to April according to RICS, however new instructions remain low, supporting rental price growth.
Affordability, outside space and broadband are priorities for renters.
The last fifteen months have taught us who the real heroes are in our community. It has been a difficult time for many us but our key workers, teachers and volunteers have just soldiered on. We so admire their commitment that we want to reward it by donating £100 from every sale we make this year. If you know of an established community organisation, in Worcestershire, that should be on the list of potential beneficiaries please write to us at firstname.lastname@example.org and tell us why.