At its peak, the financial crisis had its fair share of negative consequences, especially on the value of real estate. In fact, if we absolutely had to put it in perspective, the real estate market is where the crisis began in the first place. Surely, Great Britain was never the culprit of these events but what happens in the U.S., rarely ever stays in the U.S. As a response to the crisis itself, real estate prices plunged all over the world and Great Britain was no exception. However, as the world (and its markets) started to recover, Britain followed suit. Just recently, things started to change for the better since the market suddenly became a buyers market all over again. To be more specific, buying activity has gone through the roof and, consequently, property prices have soared as well. Some agencies are reporting record setting numbers that will leave a deep impact on the property market in the years to come.
On average, the asking price increased by over £8,000, which is the equivalent to around £260 per day. A middle range property is now going to £250,000 while prices are expected to increase in the following year. However, the increase will not be as dramatic as the previous one. January was really busy for both property owners and buyers on a national level and it would be logical to suppose the trend will continue. Various property websites are reporting a notable increase in inquiries as well. When comparing it to the same time period from last year, the inquiries are now up by 20%. This means that the recovery trend is not going to be diminished in the next couple of months as all the numbers clearly show serious interest in the property market. In fact, it seems that people are either starting to recover from the financial crisis or they’re fearful of the next one and think real estate is their best bet. With the number of sellers increasing because of the positive upward trend, we’re hoping the buyers’ stay in the game as well.
Property Net Worth
Everybody loves an upward trend and everyone loves to jump on the bandwagon as soon as the wagon proves to be headed in the right direction. Naturally, with all the property fluctuations and downward spirals that we have witnessed over the past years, nobody can truly tell how long the positive trend will last. For instance, there are 20% more properties listed today than in the same time period from last year. Does that mean people are finally willing to sell their houses for what they’re actually worth? Or are they sick of waiting and have decided to roll the dice and see how it goes? Well, the real answer lies in the number of houses that are being sold and judging by some well established property websites, that number looks more than promising.
Times Have Changed
Fortunately, the trend doesn’t end in the online world since real estate agents from some of the most prominent UK realtors are also admitting the number of advertised properties has gone up by almost 11% during the last year. With an increase of sales, stocks are on the rise as well. At the same time, don’t be fooled by all the fancy numbers. As much as we would like to report a full-blown market recovery, the fact of the matter is that new buyer registrations are still in the 40% zone, which means the market is still heavily fluctuating and somewhat unbalanced. This stems from the fact that the traditional method of buying and selling is completely out of date. Back in the day, if you fancied a piece of property, that meant you needed to sell your own house in order to be able to afford a new one, or at least get closer to affording a new one. Today, real estate agents are not interested in property owners that have these grand plans of selling and buying. They are only interested in serious clients that have already sold their house and are ready to finance their new home immediately.
In a poll that was recently conducted with first time owners that have bought new properties within the last year, 20% of them stated they regret buying the property since they could’ve achieved a better quality to price ratio if they took some more time. London, however, is still going strong since the price of an average property has jumped by almost 19%, reaching £449,000. According to a recent poll in the Guardian, 63% of people are getting fed up with rising property prices, 20% would like the prices to fall and 14% would really appreciate it if they continue rising. The 14% most likely represent the sellers in today’s market.