I was recently reading a report by Rightmove that a North/South Divide has started to appear in the UK property market. I wanted to see if Thurrock was falling in line with those thoughts too. In the North, there are 7.12% less properties on the market than 12 months ago, whilst in contrast, in the South, there are 14.7% more properties on the market.
With the decline in the number of properties for sale in the North compared to 12 months ago, it means the North is more of a ‘sellers’ market’ in this moment. However, on the other side of town, there is a significant rise in property choice in all of the Southern regions, showing there are signs of a buyers’ market, which can be a driving force for some downwards price pressure.
Thurrock and Regional Market Trends
Looking closer to home then at the asking prices and the number of homes on the market – In the East region, according to Rightmove, the average asking prices of new properties are 2.4% higher than 12 months ago and 0.7% higher over the last month. Do remember that this is the asking prices – not what is actually happening to the property values. Also, regionally, there are 24.9% more properties on the market than 12 months ago.
Even closer to home, overall, the number of properties and building plots for sale in the RM20 area of Thurrock have decreased by 24%, going from 33 properties for sale a year ago to 25 properties for sale as I write this article. This means Thurrock, RM20 does not in fact match the regional trend.
Looking at the individual types of Thurrock property, you can quite clearly see the different markets within Thurrock. The two sets of figures that stand out are the decrease in Terraced/town houses sale, falling 82% and the decrease in Semi-detached properties by 14%.
(NB There are a handful more Building plots and other types of property that can’t be placed into the four category’s. It’s those that make up the total numbers in the paragraph above the table)
Inflated Asking Prices
What’s interesting is these figures don’t tell the whole story, because in certain areas of Thurrock, certain types of properties (particular locations and Primary school catchment areas) are in short supply. This has caused some frustration with buyers of those types of properties, which in turn has sparked some very localised asking price growth within those hot spot areas. Sometimes even to levels where sellers optimism turns into silly over the top asking prices.
This means the property sticks, which isn’t sustainable. As a consequence, there are certain parts of the Thurrock housing market with upward asking price movements, being offset in part by intermittent asking price reductions where home owners or their estate agents have been over optimistic with their initial marketing asking price.
What does this mean for homeowners and landlords in Thurrock?
If you are planning to sell your home or buy-to-let property, the key for determined sellers is to set your asking price correctly from the start. It’s so vital in the selling process to be competitive to attract buyers. Everyone has access to the three main property portals (Rightmove, On the Market and Zoopla) and can easily compare your property against others in the area. When you do search these portals, make sure you ask to also show properties that are sold subject to contract, to check what properties are selling for in your neighbourhood. Unless you have something highly unusual or unique, this perhaps isn’t the best market to set an optimistic asking price in hoping to find someone who would pay that silly price.
And if you are buying in Thurrock? The numbers of buyers are lower than a few years ago, although those buyers that are in the market have become quite serious. The times of time wasting “carpet treaders” (estate agency slang for the same type of people car dealers call tyre kickers) are long gone. Those buyers that are in the market are real buyers, wanting to buy, but only at the right price. We live in a 21st century society that is “time-poor” so nobody really wants to even view a house, let alone pay over the odds if they believe the asking price is too high. So, if you are buying, do your homework; Ask plenty of questions of the agent, find out the motivation of the sellers and the real reasons behind why they are moving … and you might just bag a good deal…
Property question? Drop me a line at Paul@thurrockpropertyblog.co.uk
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