Is Now the Right Time to Sell Property?

A new report shows that the gap between supply and demand in the housing market is beginning to close. Is now the right time to sell property?

According to the latest National Mortgage Market Monitor released by the estate agents Haart we are beginning to enter a buyers market, with less people looking to buy houses, more people seeking to sell property and fewer house buyers chasing each individual property for sale.

The pattern is most noticeable in the Capital, where there has been a 32.3% in the number of people looking to sell property, as London homeowners try to cash in on currently high house prices in the city, while demand has dropped by 15.7%.

While the countrywide figures are not as drastic, the pattern is still distinct. The number of house buyers entering the national market decreased by 2.8% in the year to July, while the number of people looking to sell property went up by 7.3% in the same period.

Monthly figures across the country show an even more distinct pattern of growing congruence between supply and demand. The level of new home buyers entering the property market dropped by 4% in the last month, while the number of homeowners with property to sell jumped by 2.6%.

Haart CEO said:

“The second half of 2014 marks a shift in favour of buyers as healthy volumes of stock return to the market. Many homeowners are adopting a now or never attitude to take advantage of the continuing strength of the market having seen their equity rocket over the last year at a time when mortgage deals with decent loan-to-values are still available. Interest rates are to remain at historic lows until the start of 2015 at least and this is helping wider confidence.”

“At the start of this year demand for homes was growing at a far greater rate than property supply but this trend has flipped and stock is coming to the market in healthy levels, up 7% annually, yet demand has fallen by almost 3% in the same period. There are now around 10 buyers chasing every property for sale, down from 14 at the start of this year. So the market is still competitive, but buyers now have more choice.”

Haart’s findings are broadly in line with a report released by Hampton’s International earlier in the week, which predicted that London house prices will slow to 3% over the course of 2015.

Residential research director at Hamptons, Fionnuala Earley, said:

“Both buyers’ and sellers’ expectations of future price growth have adjusted. With the regulators’ beady eyes (and policies) firmly directed towards the housing market, price growth at the current pace is not sustainable.”

It would seem that we have now returned to a buyer’s market in which those desiring to buy houses have a decent amount of stock from which to choose.

However there is a danger that, as house price inflation begins to slow, more people will begin to decide against selling property. Thus there is perhaps a brief window of opportunity for policymakers to adjust the output of new homes in order to avoid a return to crisis level gaps in supply and demand, the chief driving force behind potential housing bubbles, arising again in the future.

While both the construction of new homes and the provision of affordable property has increased in volume over the past few months, the numbers witnessed are still woefully inadequate to cope with an exponentially expanding population and the consequence upward curve of demand this will cause.

While the latest figures appear to answer a number of questions relating to the housing market, the unfortunate truth is that it poses more. Principal among which is whether or not now is a good time to sell property.

While many market conditions, such as relatively high house prices and the imminence of impending interest rate rises that look set to cool the market further, make it appear that it may be best to strike while the market is hot, the fact that the odds are increasingly being stacked in favour of house buyers will make many wonder whether now is such an ideal moment to sell property.

The fact is that, when it comes to the housing market, the situation is rarely ever ideal for anyone. Deciding when and under what circumstances to sell property is always something of a gamble. So place your bets now.

If you feel that the current market circumstances make now the ideal time to sell your home, contact National Homebuyers. We are the UK’s top direct house buying company and we have been leading the fast purchase property market for over ten years. We buy any house, completely irrespective of your home’s condition or location and regardless of your circumstances or reasons for wanting to sell your home. Following the provision of a fast, comprehensive, no obligation valuation of your property, we guarantee to make a

We buy any house, completely irrespective of your home’s condition or location and regardless of your circumstances or reasons for wanting to sell your home. Following the provision of a fast, comprehensive, no obligation valuation of your property, we guarantee to make a genuine cash offer to buy your house. If you want to sell your house fast, or if you simply want to avoid all the stress and hassle you often have to deal with when looking to sell property, contact National Homebuyers now.

If you want to sell your house fast, or if you simply want to avoid all the stress and hassle you often have to deal with when looking to sell property, contact National Homebuyers now.