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New properties are more likely to sell this year…
July 29, 2009Article by Ray Withers
Apologies for the lack of regular updates, I have been on annual leave and forgot to mention it before I left. Anyway I am back now and feeling refreshed and revived, and ready to bring you all the news that gets me excited!
I have a brand new piece on the UK property market to give you, courtesy of the researchers at Hamptons International.
Recent research has shown that real estate which is newly introduced to the market is much more likely to sell this year than it would have been this time last year.
This research in properties for sale has also revealed that sellers are almost 50% more likely to vend their real estate than they would have been when the market was at a peak. When comparing between May 09 and May last year the balance between available stock and buyers has clearly swung to favour those looking to sell. This is due to a 40% increase in demand with a concomitant decrease of 31% in new supply to the market.
The studies also show that the number of new applicants entering the market has increased by over 85% from the documented record peak in 2007. This year sales have doubled in quantity and value in direct comparison to last year. Despite the advantageous situation for vendors, an increase in supply is still urgently required to meet the heightened number of buyers.
The average net sale from the last four years has finally also been reached in this year. This includes the stable market of 2005, the intense market in 2006, the expansive growth of 2007 and devastating fall that occurred during 2008.
This creates a very promising situation for those looking to sell because the chances of selling real estate in this market is statistically much higher than they were at the height of the market in 2007. These calculations also display the sustained improvement of the market which comes as a result of the increasing trust and action in the market.
All around the Country, the balance between buyers and vendors is strongly favoring the sellers as there are about 9.4 new applicants looking to buy per vendor. In the capital, sellers of London properties will find that this number even exceeds 10. This imbalance is will surely lead to some stability in prices.
Even though the statistics are so clear, the significance thereof is only slowly leaking out to prospective sellers, and a large number remain oblivious to the recent, extremely favourable, development in the market. So anyone that is considering selling their property: this is certainly the time for it as new buyers are prepared and waiting.
Written by: Christopher Chadd