Recently we’ve experienced a striking increase in demand for properties in Brampton and surrounding areas. Demand is far outweighing supply causing new listings to sell within days of hitting the market. The number of offers we’ve been receiving is also staggering causing buyers to go to a sealed bid situation. The last six properties, we put on the market this month (may) in Brampton, all sold for asking price or above, some significantly above the guide price, setting new benchmarks in the streets.
With this current spike in demand, it is difficult to provide an accurate guide price as continued bidding wars push sale prices way beyond their guide price. To give all interested parties the opportunity to view and make an offer we’ve been hosting open days then taking offers to a sealed bid system. This ensures the best possible price is offered on the property.
The sealed bid system is the fairest way to give all hopeful buyers the opportunity to offer on the property. Each buyer submits their best and final offer by a deadline and these offers are presented to the vendor. It’s almost getting to the stage for house hunters needing to look at properties under budget to then be able to offer over guide price if it goes to a sealed bid situation.
Spring to summer is a busy time for Huntingdon estate agents but the pressure of meeting the stamp duty deadline and the increasing demand in house hunters is adding to the overblown schedules. First-time buyers are on the rise with the 5% deposit guarantee scheme underway and many people are also looking to upsize/downsize at this time of year before the summer months approach.
However, the biggest driver for this uncharted market we find ourselves in, is the classic supply and demand scenario, there are just not enough properties on the market in the area for buyers to buy, we are finding local buyers are competing with out of area buyers, mainly from London, and because of this, the prices are driving up the market value.
We are not completely out of lockdown, potential buyers/sellers are still waiting before they take the first steps on their next move, this will create more movement. Construction companies can't build enough new houses fast enough to keep up with the growing demand, last year (2019/2020) we saw around 250,000 homes built in England bringing it well under teh annual target of 300,000, but what's more shocking is this has been the most houses built in a year since 1987. And we are expecting the numbers for 2020/2021 to be less! Finally, we still haven't seen the full effect of 'working from home', which will continue movement across the country over the next year or two.
The property market is most definitely seeing a huge ‘price adjustment’, how high this adjustment will go is anyone's guess at this stage.
The property market is continuously fluctuating but now, this is currently a positive time for property sellers, the same can’t be said for hopeful buyers.
If you are interested in an in-depth valuation of your home, please get in touch, or for a quick online valuation, select the link Value My Home
If you are a buyer looking for some advice, please call in the office, and we will be happy to help.
By Kye Liddle (Managing Director)