Nathan Walker, Sales Director, discusses some recent data from Rightmove that shows the property boom in Wales has shown no signs of slowing down in recent months..
The property market has remained buoyant despite consistent speculation that property prices will surely eventually flatten out in the very near future. Recent data from Rightmove has revealed that the average asking price in Wales has spiked more than 9% in the past year, with the average property marketed at £232,440 (+9.4%) at the time the data was recorded.
According to Rightmove, the current conditions are providing the “hottest ever condition to buy” as they claim buyer demand per property for sale has more than doubled since before March 2020.
At the start of 2021, it took an average of 65 days to find a homebuyer, but that had reduced almost 50% to 37 days by September.
There has also been a significant rise in the number of ‘power buyers’. A power buyer relates to people who have previously sold their home for a high price, have cash in the bank, or who are first time buyers and have a mortgage already agreed.
Rightmove say that these power buyers are causing problems for other buyers as they are out-muscling those who are in a chain or who simply have less funds available.
To put things into perspective, they say competition has more than doubled among potential buyers since 2019, so in order to be in the race, let alone secure a first choice property, buyers need to somehow find a way to increase their buying power if they want to beat the rest of the field.
With many people opting to take a much-awaited holiday over the summer, this likely lessened the overall activity in the property market. Despite this, a high ratio of buyer demand to properties for sale has resulted in the market remaining starved of properties.
Traditionally, buyers would simply need a little more cash to hand than the competition or a higher salary to outbid other buyers. Things are currently different as ‘power buyers’ are taking pole position largely through finding buyers for their own property quicker than everyone else, or by being in the fortunate position of not needing to sell at all.
Property experts have also pointed out that price increases away from major cities have also been fuelled by a lack of available properties as more people have been seeking opportunties to move to more rural areas during the pandemic.
Rightmove closed things out by stating that things are looking a little better-balanced as we enter the autumn market as more homes gradually enter the market to provide homebuyers with more choice. New listings were up 14% during the first two weeks of September when compared to the last two weeks of August.
Are you looking to buy or sell in a property Cardiff? Our expert sales team here at CPS Homes have the knowledge to help ensure you achieve the best price in a buoyant market as well as source the perfect home in our beautiful city. Contact us today by calling 02920 668585, e-mail email@example.com or pop into one of our three Cardiff branches.