Early sellers in Reading take advantage of sellers’ market
By Charlie Higgs – Owner Village Properties
2022 was never likely to be a typical year for the Tilehurst and Reading property market. In last months newsletter, we talked about local home owners ‘considering a move in 2022’. In the article, we looked at the issues experienced by local buyers and sellers at the end of last year.
Notwithstanding the serious issues around the Covid pandemic, there was, what was described by much of the mainstream press, as a ‘buyer frenzy’, and to compound matters, very low levels of new property stock coming to the market. Consequently, many home owners shelved their moving plans and that happened not only last year but also the year before.
This two-year hiatus has put on hold many people’s desire to move home, although encouragingly, from the early weeks of January, we began to see positive signs that this pent up requirement to move was starting to ease.
With the combination of the easing of Covid restrictions, new year resolutions, the likely increase in mortgage interest rates and people just wanting to get their lives moving again, all made for a surge in activity.
The right time to move
Typically, February and March has been the time of year people start planning a home move, and whilst this has not been the case for the past couple of years, as discussed above, this year has seen a big upturn in seller activity.
From our own experience, we have seen an 18% increase, compared to the same time last year, in the number of buyer enquiries registering on our mailing list. As well as a record number of local home owners that have arranged for their property to be valued and planning a move.
Likewise, nationally, Rightmove’s recent ‘House price index’ confirms that there are early signs that more property choice is on its way. With the first working week of 2022 being the busiest start to the year ever, for people requesting agents to come out and value their homes.
The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020.
Whilst traditionally the early months of the year are not busy months in the property moving calendar. Sellers often choosing the springtime to market their homes, with lighter evenings, warmer weather and gardens looking more photogenic, people’s motivation to move home is stronger.
Taking advantage of sellers’ market
This year, we’ve seen the more normal seasonal moving trend return, as many of those considering a move are waiting for the warmer weather. Although of those local sellers’ that have taken an early initiative and put their property on the market, many have succeeded in achieving a sale, often very quickly and more often than not at or in excess of the asking price.
As an example of the current pace of the market, we were recently instructed to market a property in Rodway Road, Tilehurst, within the first day of the property coming to the market we had 20 view appointments, from which multiple offers were received and a sale was agreed on the same day at the full asking price. Similarly, this week we agreed the sale of a property in Red Kite Close, Calcot, the property was on the market for less than a week, with over 20 view appointments and an offer over the asking price was agreed.
In the current market, where buyer demand remains strong and continues to outstrip the supply of new property stock coming to the market. Savvy home owners are taking maximum advantage of the high levels of buyer demand and are often rewarded by selling quickly and achieving the very best prices.
Looking forward
The currently strong sellers’ market is not expected to last, as Spring gets closer, we expect more people will put their homes on the market and the current advantages will inevitably diminish. So our advice to clients is to get an early start and take maximum advantage of the favourable conditions.
Adding weight to our contention, the ‘House price index’ from Rightmove also confirms the current advantages for the early sellers –
- The number of buyers enquiring about homes is 15% higher than the same time last year.
- The number of available homes for sale per estate agency branch drops again to a new record low of just 12.
- As a result, competition amongst buyers is almost double what it was at this time last year.
Whilst national house price inflation can seem fairly arbitrary and often not relevant to the local market, it is a good indicator of local trends. The ‘House price index’ confirms the average price of property coming to market was up 0.3% in January, which is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016.
To summarise
As the old saying goes, ‘an early bird catches the worm’, and at this point in time, that could not be truer for home movers… If 2022 is the year for your home move, start the ball rolling early and take advantage of the current favourable conditions.
If you require any help or advice, please give me a call anytime.
Until next month, happy house hunting.
Charlie Higgs
Village Properties
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