New Year Review 2016

- Thu 21 Jan 2016

If I was the Captain of a ship I would say ‘steady as she goes’ for the SW property market in 2016. Last year saw a modest 3% increase in the South West sale price up from £209,000 to £215,000 as an average right across the sectors and the region. My forecast for 2016 is a further 2% which will take the average South West house price up to just a shade under £220,000 by the end of 2016.

I am very aware that other bodies are forecasting higher rises than that, some are mentioning 6% and I have even heard 8% by some very credible experts but none are based here in the South West and none possess the data from the largest independent source in the region so I prefer to go on what I know, instead of hype or even hope!

2% because everything is stable. There is a good supply of new instructions coming onto the market and thanks to George Osborne and Mark Carney low interest rates are set to continue combined with a range of ‘Help to Buy’ schemes all in place to assist people into home ownership so we will see a continued steady demand for property too over 2016.

Supply and demand is what it is all about and with sufficient supply of both second hand and new build instructions coming to the market, demand will be satisfied and a heathy and sustainable growth in price will be maintained. I mentioned New Build and again the Government are determined to ease the historic boom bust cycle of the property market by insisting County Councils cut their red tape and make it easier for developers to build the much needed new homes to help to satisfy the demand and also to assist with the stability of prices as if there is sufficient supply of homes then stock shortage will be avoided, which is the one thing that will always set prices spiralling upwards.

The way we buy and sell property is set to see a revolution in 2016 and this is clearly underway when you see some of the recent TV advertisements but my advice to anyone thinking of selling or buying a property is deal with someone who knows what they are talking about and who can genuinely advise you with your best interest at heart. If you are selling then you want an agent who actually knows the area your property is situated in so they can advise buyers accordingly on enquiries and above all else you want an agent who is successful at actually selling property in your area and can advise you honestly and accurately about the all-important asking price. The market is very price sensitive which means if an asking price is too high a property will become stale on the market and will involve a drop in price, probably lower than could have been achieved if it came to the market at the right price in the first place. Before instructing any agent to act on your behalf ask them how many houses they have sold in your town in the last 12 months and what % of the asking price was achieved. A good agent in 2016 will have a very user friendly website where properties and information are both easily accessible and available, but there is so much more to it these days. You will fast appreciate a presenter led video of your property which will bring more serious buyers to your door already having comprehensive knowledge of your property and then if that is linked with drone video the prospective buyer will also possess good knowledge of the surrounding area. These things are considered essential in a buyers eyes these days so check your prospective agents’ website for their availability. Most importantly don’t forget to check agents’ performance as rated by their previous customers using the estate agents independent review website after all we are discussing the sale of your most important asset so you should carry out your research very carefully.

2015 saw strong transaction levels with a 12% increase in new instructions coming to the market and a very strong 14% increase in sales agreed. I believe we will see even more transactions take place in 2016 as all the factors are good and the market is sustainable giving confidence to buyers when combined with all of the other favourable factors. This means we are set for a busy 2016 and that is even before the next series of Poldark hit’s our screens.

Francis Marshall - Bradleys Managing Director

Francis Marshall
Bradleys Managing Director