Reading Property Market Update – October 2021
By Charlie Higgs – Owner Village Properties
Fuelled by high buyer demand and the continued rise of the ‘power buyer’ and despite an increase in property coming onto the market, demand is still considerably higher than supply of new property stock.
Property prices at an all time record
Whilst autumn temperatures begin to cool, the property market remains smoking hot with the price of properties coming on to the market up by 1.8% in the month, the biggest rise at this time of the year since 2015, and an all record in terms of asking prices.
Add to this the speculation in the media of possible interest rate rises, this only stimulates the market further by those looking to take advantage of current low fixed rates mortgages currently on offer, as lenders compete for their share of the lucrative mortgage market.
The strong sellers marketing is further demonstrated by Rightmove’s recent ‘House Price Index’ that shows the number of sales agreed in September was up 15.2% compared to what was a relatively normal market in 2019.
The rise of the power buyer
Adopted by the media in recent months, the power buyer term refers to buyers that have either already sold their home subject to contract or with nothing to sell having moved into rented accommodation. Putting them in a great negotiating position when offering on their new dream home.
From experience, these highly motivated buyers are often those that have previously lost out to a power buyer on a home they set their hearts on. Having been previously disappointed, these buyers have made the decision to put themselves in the power buyer position the next time.
This inevitably means selling their existing home before finding their new dream home… For many, the prospect of this is not an easy consideration, and a position I have some sympathy with.
Although having said that, having seen first-hand the heartbreak of those having lost the home of the dreams to a power buyer, this approach is one I find myself consistently recommending to clients.
Is now the best time to sell your home
This is a question I’m often asked by local people in Tilehurst and the Reading area. It is perhaps a bit of a leading question for an estate agent in Tilehurst. Being objective, if you have made the decision that you want to move to a new home, whether you have a growing family, need space to work from home, moving to a different area, downsizing or whatever the reason, now is a great time to sell.
With property values at a record high and a very active seller’s market, it’s difficult to argue against selling in this market. However, having sold, most then need to buy another property, which can be challenging if you don’t approach it with the right mindset.
With your own property under offer, you have power buyer status, which puts you in a strong position, but often patience and a level head are required in a fast-moving property market. Be prepared to explore every opportunity and make friends with all the local estate agents, to be sure to be first in line for new homes coming onto the market. Agents often have a ‘hot list’ of power buyers so make sure you’re on it.
Be prepared to drop everything and view those new properties coming on to the market and be in a position to act quickly if you find the perfect home.
If you are considering a move and would like some help or advice, please feel free to give me a call anytime.
Thanks for reading
Charlie Higgs – Village Properties
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