The number of properties coming to the market has continued to slow this week. There appear to be plenty of motivated sellers out there but the lack of property for them to buy is dampening the urge to list their own property.
As a result we have seen quite a high volume of properties that have been listed for some time now attracting interest and going under offer. If your home is on the market and has been listed for some time, consider giving it a fresh look, perhaps with some new photos or even just altering the appearance of your current listing to attract new buyers.
Our analysis of listing data showed that the monthly slowdown was -6.1% across the UK. (Note “monthly change” is 30 days to 22-May compared to 30 days to 22-April)
By region the slowdown in new listings was greatest in London and the South falling -7.9% and -6.9% respectively. By property type new listings of houses had slowed down twice as sharply as flats, -8.0% and -4.3% respectively.
Reducing supply will not help the already low stock level on the market. What we would expect to see next is a decrease in sales being achieved, and when sales volume falls away only then can we get the rebalancing of the market, stock increasing, with supply outstripping property coming off the market.
Retirement homes are hard to sell at the best of times, but are getting even harder. New listing volume grew +8.8% month on month. Enormous delays at the probate registry combined with a reluctance to conduct viewings during covid has likely resulted in a pent up volume of stock to come to market.
We are seeing this increasingly occur now.
Under normal circumstances retirement homes fall in value -2.6% in value for each year of ownership. We expect this dynamic to be exasperated further now, and finding a buyer for second hand retirement property extremely challenging.
Movewise works with probate solicitors and has a specialist in retirement homes: Kitty Cavendish, who is well informed of all those agents active in this space and those specialists that can assist. Read our guide here on “How to sell a retirement home” and get in touch with us if you need to sell or are struggling to sell one of these properties.
Pressure on solicitors is building up this week, particularly for those sellers and buyers in chains who are trying to exchange and complete before the end of June. Many solicitors are now suggesting that completing in the last week of June may be risky for those in chain situations as there is likely to be so much pressure on the conveyancers and lenders.
If you find yourself in this situation with your purchase or sale, try to ensure as much time as possible between exchange and completion to give the solicitors time to prepare for completion and the lenders/banks time to draw down the funds required.
Have a great week.
The Movewise Team