Research carried out by The Halifax has found that housing stock has been at the lowest in number during 2018 than in any year during the past decade, leading to little choice for house hunters, as reported by The BBC earlier this month.
A rise in house prices
Despite demand remaining consistent due to stable levels of employment and low mortgage rates, less choice is, in turn, leading to rising house prices. As of the end of September, house prices had risen by 2.5%, with the average home costing £225,995.
However, with figures for August at 3.7%, the rate of growth appears to be slowing month to month. Added to this, with wages remaining modest and the Brexit-fed economic uncertainty at present, we are unlikely to witness a rapid increase in house prices as seen before the economic crisis.
Back to work boost?
What is traditionally a busy time for the housing market – with people returning to their work routine after the summer holidays and putting house move plans into action – has been much quieter this year across the UK.
Following this research, housing professionals are calling for an increase in housing stock and encouraging would-be sellers to put their homes up for sale, taking advantage of a seller’s market and helping to fuel activity in the housing sector.
Strong seller’s market in Glasgow West End
From a local perspective, we recently reported in Glasgow Property Times that homes in the West End of Glasgow are achieving between 5% and a huge 30% above the home report value, due to increasing competition between buyers. There simply aren’t enough homes to satisfy buyer demand at present, with every new home coming onto the market creating a flurry of interest, numerous viewings and multiple offers.
For example, at Vanilla Square, we recently sold a flat in Yorkhill for 30.4% over the asking price and a staggering 48% over the original asking price! Closing dates are now the norm, and after the disappointment of missing out on numerous properties, desperate buyers are willing to pay more to secure their desired new home. With mortgage rates still low, buyers are pushing for 95% financing to free up the extra funds.
West End home owners take note!
It’s a great time to sell in the city, especially for those sitting on property in the West End. Autumn is traditionally a busy time for the market and buyer competition is leading to very quick sale turnarounds, often within a two week window.
Though Brexit looms, we continue to witness strong buyer demand and no sign of the market slowing. Thinking of selling up and taking advantage of the current climate? Contact us here today!
Vanilla Square – highly personal sales and lettings! Whether selling or letting property, you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers and landlords maximum exposure. If you’re looking to buy, sell, rent or lease your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.