Asking Prices Rising at the Start of 2015
The property market is growing, with a rise in asking prices this month. However, this isn’t all good news for the market, as demand for property is higher but there has also been a decline in new instructions. This is limiting the choice of suitable properties for those wanting to move up the ladder.
The latest figures from Rightmove show that there was a 2.1% rise in asking prices in February. The average price that a property is put on the market for is now £279,004. This should make it the perfect time to put a property up for sale. However, compared to this time last year, agents are reporting a decline of 4% in new instructions.
The report from the online property portal also shows that there are more buyers who are looking for the right property. There has been a 31% growth over the past two years in the number of housing transactions. However, during the same period, there was only an 11% growth in the number of properties that were put on to the market.
The Supply and Demand Issue
One of the main reasons agents see for this decline in supply is the lack of new housing being built. This means that there is less choice of properties available for those moving. This is forcing buyers into using different tactics in order to secure the right property. They may need to compromise on the features they’re looking for, consider a property with renovation potential or stay in their current home and adapt it to suit their needs. This could involve using Halifax fabricators to install a spiral staircase to their new loft conversion, for example.
The growth in the buy-to-let market is also affecting the availability of housing stock. The market has grown by a further 2.6 million homes in the period since 1996. Typically, these investors do not sell their properties as frequently as traditional homeowners. This results in homes being tied up for a number of years, affecting the supply chain.
Creating a Dream Home
This rise in the typical asking prices looks to be good news for homeowners and make it the right time to put your house on the market. However, if you’re looking to move to a larger home, you could find it harder to buy your dream property. Instead, it might be a useful idea to reassess your current home and look at ways you can create the perfect property in your current location.
There is a range of options available, depending on the budget and space available. You could look to extend the property outwards or upwards, such as installing a conservatory or loft conversion. There’s also the option to increase your outdoor space by having a balcony fitted by Halifax fabricators.
This situation in the housing market is likely to remain the same in the near future. With a limit to the number of new homes that are being built, the supply and demand situation will stay the same over the coming months.