Nathan’s Sales Market Update – March 2022
Let's get straight to it, if you are thinking of moving, there's never been a better time to maximise the sale price. Our sales team are extremely busy, in fact we're currently recruiting additional talent to keep up with the overwhelming demand, welcoming CVs to be sent through to nathan.walker@cpshomes.co.uk if you'd like to be considered for a role with us as a Sales Negotiator. I was approached for comment this week by John Jones at WalesOnline; here's a snippet of the insight I provided to support the article.
Market conditions reach supersonic levels of activity
The market conditions over the past two years have gone from fast to supersonic. Our early indicators were that the market would have slowed down by winter 2020 but this certainly hasn't happened. Prices have continued to increase due to incredibly low interest rates, high volumes of buyers searching, and lower levels of new properties coming to market. Pre pandemic, it would be commonplace for us to see 100+new and reduced properties coming onto Rightmove across Cardiff per day. More recently, we are lucky to see highs of 50, so it's easy to see why prices have rocketed.
Incredible numbers of active buyers = prices pushed up to record highs
When we list properties in the vast majority of areas across Cardiff, the phones simply do not stop ringing and we have streams of buyers on reservation lists within two hours of making a listing available. Just last week was our listing on Kimberley Road, Penylan. We launched for £625,000 and received over 100 viewing requests, nearly 20 individual offers, and achieved £700,000.
With prices rising so quickly, it's nigh on impossible for mortgage valuations to keep up. Buyers will fight tooth and nail when it comes to their offer levels, throwing everything at the purchase price and more to secure a property. We find ourselves having frequent conversations with sellers explaining that offers backed by 5 -15% deposits that come in £30,000+ over asking stand little to no chance of completion at the agreed price because when a mortgage company sends their representative to value, they simply won't agree on it and down value it. This is also why so many buyers are uttering the words 'we've lost out to a cash buyer.' Whilst this may not have been a higher value offer, a cash offer is not subject to a valuation report by a mortgage provider.
An influx of homeowners listing their properties for sale would definitely help and early indicators for the Spring months from the number of valuations being booked is really encouraging. More properties coming to market would give buyers more choice and help to level off on the sharp increase in prices we are seeing.
My advice for buyers
With Covid restrictions in place, it's just not logistically possible for us to show over 100 individual buyers around a property, without having enough hours in the day, so there are buyers feeling disheartened and disillusioned across Cardiff which is certainly not what we like. My advice to buyers would be to hold on in there. Shop around using a good broker for the very best mortgage products. As interest rates rise products will change so don't fix yourself to a specific lender. Keep sending the viewing requests and set yourself up with RightMove and as many agents as you can for immediate property alerts in the areas you are interested in. When you see it listed pick up the phone and get that appointment booked. If you rely solely on sending an email request by the time the agents get to it from the onslaught of phone calls you'll likely miss out.
If you're thinking of dipping your toe into the water, why not schedule a call with me? You can reach me on 02920 454555 for a chat and I'll be happy to answer any questions you may have, or if you want to jump straight in with a market appraisal (no obligations) you can book easily via our online form cpshomes.co.uk/free-valuation.aspx or email nathan.walker@cpshomes.co.uk.
