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House Selling Prices Dropping can be a Cause for Concern when Buying and Selling Houses

As you would expect we keep a close eye on the property market, the trends, what’s hot in the housing market and what’s not.  We keep our eye on the ball regarding prices too and always know what’s going on regarding house selling prices.  Here today, we can report that house prices have fallen for the first time in 2021.

Whether you are in the market to buy and sell or just one or other; what you want to know is what that means to you regarding buying and selling houses.

2021 was seeing a housing boom with prices rising month and month and demand in many areas outstripping demand with the stock of houses on the market in July 24% below the same time last year.

When we look closely at the market, we can see that prices have dropped for detached 4 bedroom homes and larger properties of 5 bedrooms or more.

We know a valid reason for this is the end of June stamp duty reduction deadline. We also know that sales and prices do tend to dip in the summer holidays.

However, the price drop is not spread across the board, smaller houses on the market, especially first time owner properties are still buoyant because buyer demand is still strong at the moment as we predicted as some take advantage of the remaining reduction of the stamp duty in place in England until September.   This could bring a saving of up to £2,500 a nice contribution towards home improvements to make the home your own.

However, realistically although Nationwide’s house price index shows a drop of 0.5% in July. 2021 was seeing high prices month on month, so it’s a small drop in two areas of buying and selling houses that have led to the price drop.  For example, Rightmove www.rightmove.co.uk/ state that first time buyer properties are up 0.6% so far in August.

There is still strong demand for homes from first time buyers upwards with buyers continuing to look at out of city places for their next homes.

For Buyers

The trend for continuing demand outstripping availability means that those looking to buy a first home or at the two to three bed end of the market will have to ensure they have all their ducks in a row to secure a quality property.

This may in some cases mean that selling your existing home fast to secure the new home that is on the market in a location that is desirable is the best option for you.  Selling before you buy gives you a very strong advantage to buy the suitable property you really want when they are new on the market.

Investment buyers may decide to look towards detached four bedroom detached houses on the market in preference to three bedroom detached houses or semi-detached because the return is significantly higher.

For sellers   

The house selling price changes depend on the part of the market your property falls into.  Apartments, flats and larger houses are currently sticky, whilst buying and selling houses that fall into other categories remains optimistic with high demand.

The demand is strongest for attractive properties that are ready to move into.  Fixer-uppers and those in need of work are still lagging behind.

Buying and Selling Houses

You are no doubt wondering “should I be worried?”  Well, the honest answer is not yet.  The housing price boom was going to slow at some time and is normal for the time of year.  What is less typical is the remaining buoyancy at the small house end of the market.

Realistically, if you are set on moving for whatever reason and whichever area your house slots into, then do all your homework.  Prepare the house following our advice articles and when you are happy the property you want to sell is prepped as well as it can be, then get it on the market.

For You

We will continue to keep an eye on the trends and intend to report via these pages where the hot spots for buying and selling houses are in August 2021 and beyond.

Should you need advice buying and selling houses the Home Owners Association offer advice: https://hoa.org.uk/

You can look up house selling prices on the government website: https://www.gov.uk/search-house-prices

Zoopla offer house price values by area: https://www.zoopla.co.uk/house-prices/