“What’s next for the property market?” is a question I have been asked repeatedly since the end of the Stamp Duty holiday.
The fundamental of any market is the relationship between supply and demand. The tax break reduced moving costs significantly so it was inevitable it would fuel demand, which when coupled with a pronounced shortage of housing stock, led to competition among buyers and price increases. Now the incentive is no longer in play, there has been a softening of the volume of new buyers registering, but demand is still extremely strong when compared to levels experienced in any ‘normal’ market. There are several factors behind this sustained level of demand. Firstly, Wokingham and the surrounding villages are extremely nice places to live. Transport links, schooling and amenities are all excellent, which encourages local residents to stay in the area as well as drawing those from further afield. Secondly, mortgage lending is widely available and banks are offering interest rates at the lowest levels seen in years with long term fixed rate products extremely competitively priced which means that there has never been a better time to borrow money.
It was widely expected that their would be shortage of available properties for the remainder of this year and that has proved to be true. Instruction levels are lower than the seasonal average and in part influenced by the cycle of sellers not putting their house on the market until they have seen something they want to buy (you can see the problem there)! So despite the volume of buyers reducing, supply is severely restricted and as a result prices will remain resilient. Any reductions in asking prices is a reflection of the market re-calibrating rather than an indicator of values declining.
Interestingly, we have seen the return of first time buyers to the market , especially for apartments and flats. This section of buyers have been largely absent for 18 months, but with job security strengthening and greater certainty surrounding whether they will be working from home, confidence has grown, and grown significantly.
We expect new instructions to remain stubbornly restricted until the New Year, but savvy sellers will seize the opportunity now to achieve an excellent price for their property whilst they have less competition from other owners.
Hat and Home is an independent Wokingham estate agency which gives a nod to tradition and a wink to nostalgia. Our mission is to make moving home a fantastic experience. If you need any help with your sale, purchase, let or rental, please just drop us a line.