Worcester May Monthly Market Update
When was the local market hottest?
The residential property market is very much the same as other industries, in that it’s susceptible to popular periods and quieter moments. The primary driving factor is almost always the economy, which affects buyers’ and sellers’ movements. Sellers stand to gain more from a popular market with plenty of demand, while buyers prosper when it slows down and affords them more opportunity to negotiate on the price. All this talk of ‘boom periods’ and ‘hot markets’ got us thinking about when the last time the Worcester property market was at its peak, and if it’s due another hot streak in the near future.
New stamp duty charges on second homes, the EU referendum and tax changes for landlords are reasons many ‘experts’ are claiming the property market is in crisis. Since these announcements were implemented, property prices across England and Wales have actually risen by 3.4 per cent, and sales rates haven’t shown any worrying signs of cooling. The market may not be exhibiting the frothy transaction levels which preceded the 2008 credit crunch, but that’s because the market is underpinned by a more ‘normal’ supply and demand dynamic.
If we look at the year-on-year price changes for the local property market over the last few years, we can see that prices saw a fall of 4.8 per cent in 2012 from the previous 12 months. Prices increased by 1 per cent in 2013, 7.5 per cent in 2014, 5.7 per cent in 2015, and 1.9 per cent in 2016. Over this period, the ‘hottest’ time for the property market locally was 2014.
It’s not rocket science that sellers and buyers will seek the best deal they can get, with the agent acting as the middle person and giving the best possible advice. Buyers have more bargaining power in a slower market because they can use inactivity as a reason for bringing the price down.
long term house price change in Worcester
Sellers are in their strongest position when the market is buoyant and they can use demand to drive up the price. Over the last five years, buyers would have found the best value in the market in 2012, while sellers would have benefited in 2014.
The rental market goes through similar peaks and dips to the sales market. Buy-to-let landlords with investments will stand to benefit more when the sales market stagnates, which often indicates a greater number of people looking for rental properties.
Even though the property market enjoys some periods which are ‘hotter’ than others, it is still very much a year-round industry. This is certainly the case in Worcester, where there is always a healthy demand for property, whether through vendors listing their home on the market or buyers looking for an investment. If you are thinking of buying or selling your property, we would love to have a chat and advise you about your next move.
Flat and house prices in Worcester
With increasing clarity from the government, the housing market is returning to its usual stride. Looking at quarter-on-quarter price data in Worcester, we can see that the average sold prices of houses is up 5.5 per cent since the first quarter of 2016.
Promising sales levels in Worcester
The weather may still be warming up outside, but it’s already a hot time of year for the property market. The expected uptick in sales has materialised as you can see from the chart. Particularly notable are sales levels of terraces, which have increased 15.9 per cent since the second quarter of 2016.
Occupancy levels in Worcester
Want to know how in demand properties in a given area are? Occupancy is a useful indicator for demand, as well as illustrating how spacious or cosy properties are in the local area. In Worcester, 59.5 per cent of properties have two or more extra rooms and 19.7 per cent have one extra room.
How many second home owners are there in Worcester?
The number of second homes registered in a local area can really give you a feel of if the area is right for you. In Worcester, the mix is as follows: