Market Update – August 2021
By Charlie Higgs – Owner Village Properties
Many property market commentators were predicting an end to the current property boom in Tilehurst and Reading following the ending of the government stamp duty holiday at the end of June. As is often the case with predictions, particularly where the property market is concerned, they got it completely wrong… As I write, at almost the end of August 2021 and now nearly two months after the stamp duty holiday ended, the local property market continues to boom with buyer demand far outnumbering the supply of new properties coming on to the market.
The local Berkshire area is, in spite of the commentators predictions and the normally slow market associated with August’s holiday season, still extremely active. Certainly in terms of the numbers of motivated buyers within the market ready to buy when the right property becomes available. It is this demand and the competition between buyers that supports the continued increase in property values.
This is confirmed by the recent ‘House Price Index’ report by the property portal Zoopla. The report confirms a 5.4% increase in house price growth and interestingly a 23% increase in buyer demand, this for the period, year to date in 2021 vers the same period in 2020.
Search for Space
The phrase ‘Search for Space’ has become commonly used in the English language since the end of the first lockdown in spring 2020, whilst generally referring to homeowners that wish to move to a property that offers, as it says on the tin, more space… Although as with most things property related, it’s not that straightforward.
Within estate agency, we talk about the ‘Search for Space’ buyers typically as people looking to move from more urban or city areas, looking for a change of lifestyle. Yes, they are searching for a home with more space, often both inside and out. They are, more often than not, motivated by the new found ability to work from home. Although, for many, the Coronavirus also plays a big part in their decision. The move from crowded city life to the leafy suburbs or the country is a big motivator. The fresh air, not so many people, space to work inside and space outside for recreation and perhaps the family.
So the ‘Search for Space’ is slightly more complex than the initially obvious, space is important but the life style, home working and security is perhaps more relevant for most and it is for these reasons many of our buyers are so keen to move the Tilehurst and Reading area.
What do we mean by motivated buyers? Many buyers have already sold their property, often an apartment in London or the urban suburbs and now living in rented accommodation or with family and ready to move when the right property becomes available. With cash to spend, these are often the buyers prepared to pay over market prices for their perfect home.
A seller’s market
Throughout 2021 we have seen what is perhaps the best seller’s market, certainly in my working life time. With the stamp duty holiday earlier in the year and the search for space continuing to drive buying trends, there has been much more demand than supply of property coming to market. August has seen the supply tighten further, as is the norm in summer holiday months, as people are focused on holidays and not moving home.
For the more astute sellers, this is a great time to take advantage of the short supply and high buyer demand. For those sellers ready to sell, there are potentially high rewards. With highly motivated buyers with money to spend, ready and waiting to snap up their perfect home and often willing to spend over market value to secure it.
We are seeing this more and more during August, most recently with a property marketed in Tilehurst, initially placed on the market at what we would have said was the top end of its value, compared with similar properties recently sold in the immediate area. Having only been on the market for just over a week, after 18 viewing appointments, we had three interested parties offering on the property, a sale was finally agreed at £15k over the asking price.
This is just one of many examples…
Now is the time to sell
If you are considering selling your home, there are some great opportunities to sell at the top of the market, if the time is right for you, now is the time to put your property on the market.