June and July saw a rebound in the property market after a slow first half of the year. So what’s been happening and what should we expect in the rest of 2017?
House prices rose by a hefty 1.1% in June, and then a tiny 0.3% in July, bring the average property in the UK costing £211,671. It all averages out, however, with the annual rate at which house prices are increasing hitting in and around 3%. This is a nice big jump from the 2.1% we seemed to be stuck at for the last half of 2016 into 2017.
In reality, the figures this year have been so volatile that even the experts can’t guess at what is going to happen in the market from one month to the next. Nationwide’s chief economist, the man responsible for these figures, Robert Gardner said that it was unclear if the increase in house price growth in June reflected stronger demand, or the lack of homes on the market.
Overall, house sales and mortgage approval figures suggest that the market activity is yet to gain the momentum we had hoped for in 2017, but that is not necessarily bad news if you are looking to buy or sell your home.
Supply is still far behind demand meaning that properties are, in general, selling quickly and for their asking price. This is a great upturn from May when the National Association of Estate Agents (NAEA) released statistics that 77% of home sold for less than their asking price that month!
For first time buyers, it means you are in a great position. The market is moving so quickly, more and more people are putting offers on homes before selling their own, which makes buyers without a chain a very attractive choice for sellers – even if you can’t afford a higher offer.
If you need help navigating buying and selling a home in East Kilbride, get in touch with Bensons today.