Well it has been an interesting year and the market has certainly had to jump a few hurdles to keep moving forward – with Brexit at the heart of a lot of uncertainty nationally and locally, the drop in the sterling, and London’s market taking a hit in July. Whilst the Chancellor’s prediction of a drop of 18% in house prices was slightly out, we have seen the London market see a drop (not as high as 18%) and sales falling through due to the EU vote, which in some cases can be misinterpreted as the condition of the national market, as we hear so much about it. However according to the RICS “… we expect UK house prices to rise by three to six per cent over the next twelve months.”
Across our South Manchester offices we have seen a much more positive reaction to the EU vote, well in terms of the housing market. Mainly because Manchester and its surrounding suburbs still have growth left within them. Due to the major investment coming to the area over the coming years, one major investment being the overhaul of Stockport town centre, these investments will strengthen our position as the northern power house.
Demand is still high across South Manchester and it’s not just homebuyers on the hunt for the next property but international investment companies are turning to Manchester and its suburbs for investment and a higher rate of return on their investment, something that they feel London can no longer give them.
So what does this all mean for SK6? Well as the City & Town centre draws more investment and more companies creating more jobs those people will need an array of different suburbs to reside. With our close proximity to the Town centre and great transport links to Manchester we are a perfect choice, which we all saw by the effect the BBC had on us as a suburb when they moved here.
Along with more medium to large scale developments happening, in particular the Dale Road school site and Marple sixth form college, there’s even more in the pipeline to keep up with demand for property in our village.
The popularity of Marple, The Bridge & Mellor has grown significantly over the last three years which has reflected in our consistent growth in house prices of 4-5% year on year. This year we have not seen it slow down with demand for houses feeling at an all-time high, in some cases properties selling a lot over their asking price and open houses with viewings in double figures. This only echoes that we don’t have enough properties to facilitate demand.
This is evident in the comparison figures we have collated for the first 6 months of 2015 vs 2016, which shows the comparison of how many new properties have come to market to how many properties have sold.
This chart shows the difficulties of the market this year with sellers feeling unsure of entering the market until they have found what they are looking for, which has seen a much higher conversion of sales throughout SK6.
This has been influenced by not only our areas growing popularity but in some cases, owners’ unsureness of the how our housing market was going to react to the EU Vote. This did stall properties coming to the market which has left little available for the buyers out there on the open market as well as buyers who have sold their own home and are waiting around for the next property to come available and are ready to act quickly. Now the interest rates have dropped again mortgages rates have never been better creating more affordability for the buyer out there, giving more flexibility on how much the buyer may offer.
I only see the local market getting stronger with properties selling within weeks and in some cases days. If you would like to discuss how your home has increased in value or a potential move, please contact me at our Marple branch on 0161 427 0755.