These statistics show that the average selling price has dropped in July by 0.5%, yet in May the average selling price had increased by 9.3%, clearly a huge amount. So if you sell in July at £250,000, sale prices will be down by £1,250 but if you had sold in May your sale price would have been up by £23,250.
In addition, the number of homes being brought to the market continues to go down - 5.6% in July compared to 3.9% last month. I think most agents will agree that stock levels are most certainly down meaning in some areas supply is not meeting demand. This sometimes results in certain properties drawing an unusually high level of interest. We had one recently which went to a closing date with 22 notes of interest, and yet other properties are not selling or are achieving below home report value.
So why are the numbers down? The recession is over and the market in general seems much better. However, there have been two major events this year which undoubtedly have had an effect on the market. Firstly, the General Election, an event which is always guaranteed to create uncertainty; the second was the significant change to Stamp Duty with the introduction of the Land and Buildings Transaction Tax on 1st April. Good for first time buyers and those buying at the lower end but a different story for buyers at the higher end of the market. This change to property taxation resulted in a spike in the number of properties being bought and sold before the new tax came into play.
This time of year remains one of the best times to sell. Edinburgh, a perennial favourite on the 'best place to live in the UK' lists, is bustling with festival visitors with relocation potential. Unusually, I think buyers have the slight advantage at the present time, although this can change very quickly. It’s very difficult to predict from month to month what the market will do. Never a dull moment for any of us!