Reading Property Market Update – May 2023
By Charlie Higgs – Owner Village Properties
Reading property market heats up
We’ve seen a significant upturn in activity in both the sales and lettings markets across the Reading area this month, with entry-level properties, in particular, seeing a boost in interest with an increased number of First-time buyers looking to get onto the property ladder.
With higher rental values making buying a home a more attractive proposition for first-time buyers and with the additional benefit of a more competitive mortgage market, as average mortgage rates remain steady despite another increase in the Bank of England base rate.
As an example, we are seeing the average 5-year fixed, with a 15% deposit, mortgage at 4.56%, compared to 5.89% last October. Although more affordable mortgage rates are available they only come with a decent deposit which can be a barrier to some.
The effect of the increase in first-time buyer activity is also freeing up the second-stepper market, resulting in an increase in second-time buyers which is slowly permeating through the rest of the market.
The upturn in the Reading market is confirmed as a nationwide trend by Rightmoves recent House Price Index, in the report they compare the more normal market of 2019 with today’s market.
The report states that for properties at the top end of the market, buyer demand is 1% lower than in 2019, compared with 3% above 2019’s level in the second-stepper sector, and 6% above in the first-time-buyer sector. Which mirrors our own experience locally.
Thinking of selling your home
Our advice to sellers considering putting their home on the market is that price is key, as properties that are marketed at the correct price they are selling well. For owners that are overly optimistic in terms of price, these properties generally attract little interest.
Sellers of properties that are priced correctly are taking advantage of the currently active late spring and early summer market. As confirmed above, first-time and second-time buyer homes are particularly active.
Rightove also confirms that first-time-buyer type properties hit a new record price this month. Faced with record rents, buying is a compelling option for those first-time buyers who are able to clear the mortgage and deposit hurdles, so demand is strong.
The early summer months are prime selling time, with the sun shining and gardens looking a picture, so if you have the moving itch now is a great time to be selling your home.
Ready to move?
As the weather is warming up, so too is the property market, we are seeing an increased number of properties coming to the market and the best of the bunch always move quickly.
Here is a selection of recently listed homes –
If you are thinking of selling your home in Tilehurst, Twyford or the surrounding areas of Reading, please call me to arrange an informal conversation about how we might help you with this.
Charlie Higgs – Village Properties Tilehurst & Twyford
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