The post-pandemic ‘reassessment of home’—households deciding to change how and where they live—has furhter to run,” says Grainne Gilmore, head of research at Zoopla. “As office-based workers receive confirmation about flexible working, allowing more leeway to live further from the office.
“This means higher levels of demand will still be evident, and potential vendors with family houses to sell could be in pole position.”
High demand for 3 and 4 bedroom homes
We’ve certainly noticed the mismatch at House Fox Estate Agents. Lower housing stock translates into faster sales as buyers compete to snap up new homes. 3 and 4 bedroomed houses are high on the list for those wishing to work from home—especially those with gardens and office space. Modern detached houses are sought-after, but we are also seeing high demand for 1930s style houses and bungalows too.
House prices have risen above the national average in North Somerset, leaping by 12.7%.†
With demand for new homes up by 21% across the country, buyers far outstrip the housing stock which has fallen by -3% year-on-year. Looking further back as a comparison, total stock is down 33% compared to this time of year in 2018 and 2019, and 25% lower than 2016 and 2017.
- Total stock of homes for sale is 26% down from 2020, and will remain low well into 2022
- Higher number of sales in the last year has eroded supply, with rise in activity among first-time buyers and investors
- Supply constraints most evident for houses, and properties priced up to £350,000
- The mismatch in demand and supply is supporting price growth, which is at 6% in July, up from 2.3% in July 2020
- Average price growth for houses at 7.6% compared to 1.2% growth for flats
- Market moving nearly twice as quickly as 2016, with time to sell at “The lower of 26 days, down from 49 days in 2019
Demand from buyers wishing to purchase homes is up by 20.5% on 2020 averages leading to a 40% increase in sales between June 2020 and June 2021.
Market moving faster
Higher levels of demand amid constrained supply is resulting in homes selling faster, with the average time between listing and sale subject to contract averaging 26 days in July, down from 42 days in July 2016*. North Somerset homes are selling faster than the national average, according to the Zoopla House Price Index report. Demand is not even across the whole market, however. 3 or 4 bedroom homes priced up to £350,000 are the most sought-after properties, followed by larger family 5 bedroom homes.
Home-owners looking to sell a family-sized home are in a prime position to take advantage of the current sellers market. And they can expect offers to be at, or close to, their asking price.
At house Fox we have put initiatives in place to speed up the selling and buying process still further. Click here for more information on our Personal Move Managers and Priority search Packs.
* Source: Zoopla House Index report
† Source : Daily Mail