South Ockendon Property Market Update: February 2023
February brings with it a mixed bag of news for the South Ockendon and British property markets, leaving potential buyers and homeowners unsure of what to expect.
- With the Bank of England raising interest rates and inflation high, what is happening in the South Ockendon property market?
- Are properties selling in South Ockendon? And if so, what is selling?
- What will happen to the value of your South Ockendon home?
- Read the article to find out what is happening to the South Ockendon property market.
As we enter February, the South Ockendon (and British) property market is full of mixed messages.
Whilst the Bank of England increased the base rate nine times in 2022, meaning they are now at 3.5% (3% higher than 12 months ago), mortgage rates are now dropping.
The South Ockendon property market rocketed over the last few years because of the imbalance of the number of properties for sale versus the demand, with many more people looking to move home than there were properties available.
Now, as we are over the first month of 2023, we are experiencing a steadier South Ockendon housing market, where homebuyers have the time and opportunity to ensure they find the right home for them.
The days of 50 viewers per property on the first weekend of marketing, frenzied South Ockendon buyers outbidding each other by increasing their offers by tens of thousands of pounds over the asking price has become the exception and not the norm.
I often get asked my thoughts on the South Ockendon property market (hence these blog articles) and at this time of year, I get asked my forecast for the year ahead.
The one big thing I have noticed is the imbalance of what is coming on the market for sale versus what is selling.
For example, 38.2% of properties that came on the market nationally in November and December 2022 had an asking price of Ā£250,000 or less, yet 45.6% of the properties sold subject to contract since 1st January 2023 have been Ā£250,000 or less.
That doesn't sound like a lot, yet it makes a massive difference to the property market.
However, itās very easy to look at national averages, regional averages and, of course, South Ockendon averages. Yet the property market is just one market nationally, as there isn't just one South Ockendon property market.
However, the same pattern is seen in the higher-priced South Ockendon properties. These higher-priced properties are selling more slowly than the lower-priced South Ockendon properties. Therefore, the need for those larger South Ockendon properties to be more realistic in price is paramount to stand out from the crowd, especially with the next point.
Evidence suggests there is a growth of South Ockendon buyers, who are looking to find a home before putting theirs onto the market. This was unthinkable last year, yet as the South Ockendon property market returns to normality, this will be seen more and more.
What are my thoughts?
Firstly, the time scale of how long it will take to sell a South Ockendon home.
I expect to see the time it takes to sell a South Ockendon home increase from 27 days in 2022 to a more 'normal' housing market of around 65 days.
Secondly, the imbalance of the South Ockendon property market.
A greater number of larger homes in South Ockendon are coming on the market because (as mentioned recently in a previous blog post) of the higher number of mature homeowners looking to downsize. This is because these larger homes have become much more expensive to heat, and as many of the occupants are on fixed incomes with their pensions, they are downsizing to cut costs.
Thirdly, that brings me to talk about energy efficiency.
This would mean you will get a lot more interest and a better price for your property. If you need any help or guidance in organising an EPC on your South Ockendon property (even if you are not selling for six/twelve months), do not hesitate to me give me a call.
So, what is happening in the South Ockendon property market in terms of new properties (aka new listings) and what is selling?
23 properties have sold (STC) in the South Ockendon area since 1st January 2023.
(South Ockendon being RM15).
However, it's essential to look at what is selling in South Ockendon, and the most active price range is the Ā£350k to Ā£400k range, where 7 properties have been sold subject to contract (representing 30.4% of sales).
Looking at what is coming onto the market in the same time frame ā¦
48 properties have come onto the market in the South Ockendon area since 1st January 2023.
Interestingly, the price range with the most listings is the Ā£350k to Ā£400k range.
This means South Ockendon is bucking the national trend (mentioned above) where nationally, the lower to middle property market is where the sales are, but the properties coming onto the market are slightly higher in price, yet itās the same in South Ockendon.
Any South Ockendon homeowners with properties in price ranges that arenāt selling so well need to be āon pointā to stand out from the crowd regarding their marketing, be spot on regarding their pricing (compared to the growing competition of other larger homes for sale) and now more than ever, their EPC rating (especially if they are on the cusp between two EPC bands).
Before I conclude, you might wonder why I have not mentioned South Ockendon house prices.
Well, what will happen to South Ockendon house prices in 2023 is something I am not sure of.
(Yes, I know that level of frankness is strange coming from an estate/letting agent).
I know the prices being achieved for homes in South Ockendon in the spring of 2022 (when everyone was out bidding each other) are not being achieved today. It all depends how you look at it.
Are South Ockendon house prices dropping or are they just returning to normal? I would say the latter.
However, looking at house prices as a ābellwetherā for the health of the South Ockendon property market has flaws.
Many economists and property market commentators believe transaction numbers (the number of properties sold) give a more accurate and truthful indicator of the property market's health than just house values alone
The reason is three-fold.
Firstly, most people also buy a home when they sell their own, so if South Ockendon property values drop by 10% or rise by 10% on the one you are selling, it will do the same on the one you are buying - meaning to judge the health of a property market on house prices is very one dimensional.
Secondly, as most people move up market when they do move home, if the price of the one theyāre selling might not be as much as they would've achieved in 2022 (if they drop), the price that they will pay on the one they want to buy will be lower. Thus, it will cost them less to move upmarket!
E.g. Last year, your South Ockendon home was worth Ā£400,000, and the one you wanted to buy would have been Ā£750,000. Letās say South Ockendon house prices did drop 10% in 2023 (which I donāt know if they will); your home would be only worth Ā£360,000. Yet the one you want to buy would now be worth Ā£675,000. So last year, it would have cost Ā£350k to move, but if South Ockendon house prices drop 10%, the move would cost Ā£315k, saving you Ā£35,000.
Third and finally, moving home is a human thing. Property habitually delivers a robust emotional connection with homeowners - a connection that few would attribute to their other investments like their stock market investments or building society savings passbook.
Moving home could be described as a human journey, moving from one chapter of oneās life to another.
Therefore, when people do move home, it shows they are moving forward in their lives, which gives a great indicator of the property market's health.
Itās going to be an interesting year for the 2023
South Ockendon property market.
My opinion. Do what is suitable for you, your family and your finances.
Ignore the newspapers and look at the facts in hand and if you want a frank chat about the South Ockendon property market, irrespective of whether you want to sell or not, call me. I might not tell you what you want to hear, but I will tell you what you need to hear.
Click on the click on the link to book a callback. CALL ME