Local Property Prices Reach New Record High
As property markets across the county continue to surge, local asking prices of properties coming on to the market in the Reading and Tilehurst areas have reached a new all-time record high. With buyer demand far outstripping supply, we are consistently seeing 10 – 15 possible buyers queuing up to view each new property currently being listed.
Confirming the position nationally, the ‘House Price Index’ recently published by the property portal Rightmove, report that the average asking price of property coming onto the market is up by 2.3% this month (+£7,785) to a record national average of £348,804, the biggest monthly increase recorded by Rightmove in more than twenty years.
More property coming onto the market
Whilst the report also confirms that across the country there is an increase in the number of new property listings coming onto the market, up 11% on the same time last year. There are still significantly more active buyers than the supply of new properties to the market.
Confirming the high buyer demand experienced locally by our team at Village Properties, the ‘House price index’ reports that nationally there were 16% more buyer enquiries than during the same period last year, which was already at record levels.
Property values increase by 10% over the past year
In line with our own experience, Rightmove reports that house prices have seen an almost 10% increase during the previous 12 month period. Interestingly, the London property market, which has seen a decline during the same period, due to the pandemic, is also now showing strong growth.
How long this will last is something I’m frequently asked, and impossible to know with any certainty, but with buyer demand currently at such high levels, the current conditions look to be with us for a while.
To compound the position, we see many buyers that fear missing out on their dream home, having either sold their existing property and rented accommodation or having raised sufficient finance to purchase without needing to sell.
We increasingly see these ‘power buyers’ competing against each other for the same property, often pushing prices over the asking price. Sadly, in this situation, there is only one winner and often we see more than one disappointed buyer lose out.
Will the Spring bring normality
Many buyers are eagerly awaiting the warmer days of Spring, in anticipation of a return to the more traditional Spring moving season. We are certainly seeing a good number of local homeowners starting to plan their 2022 home move, as with the warmer days, gardens begin to bloom and homes look more photogenic in the sunshine.
Of the local sellers we talk to, there is a definite desire to move, many having put this off their planned move for the past year or two due to the pandemic. There is a real sense that people just want to get back to normality, this month in particular we’ve received 18% more valuation appointment requests than for the same period last year.
Rightmove’s ‘House price index’ also confirms a significant increase in the number of people requesting a valuation of their home within the past month.
Why is there such strong local buyer demand?
Talking to local buyers and sellers in the Reading area, the implications of the pandemic seem to still be the primary influencer for a good many home moves. We’re seeing many second time movers that have put their onward move on hold over the past couple of years, and are now in serious need of more space for their growing families.
Downsizers are also currently very active, with their children having left home and homeworking now a real option. Reading is an attractive option for these buyers, with prices relative to the London suburbs much more reasonable, allowing capital to be released. We are often able to offer properties that are only slightly smaller than their existing home but with more outside space and in a much less urban area.
Considering moving home?
If you are one of the many considering a move in 2022, make an early start and take advantage of the current very strong local market.
If you would like some help or advice, please feel free to give me a call at any time.
Until next month, happy house hunting.
Thanks for reading