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^{nick@huttonsandpartners.com}

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“Nobody has a crystal ball into the future.” The standard one-liner from estate agents.

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File that next to: “it’s a real fixer upper,” “this one’s got potential” and “we’ve had a lot of interest, so you need to move fast.”

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Nevertheless, it is true, of course, so how can you decide the best time to sell your home? Ultimately, you make the best decision with the information available:

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Macro - the economy, interest rates, unemployment, market trends…

Micro - local area conditions, amenities, transport, development…

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The national press says mortgage rates are increasing and recession is looming. Further, Nationwide, Rightmove and Zoopla all predict that after 18 months of record highs, there are tentative signs of a slowdown in the housing market. Mortgage approvals are slowing, and demand is likely to decrease due to cost of living concerns.

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And yet… across the UK, house prices have increased by 10%+ over the past 12 months. Nationwide reported 12 successive months of price increases to July 2022. Rightmove last month revised its 2022 house price forecast from 5% growth to 7% (with buyer demand 26% higher in July 2022 than July 2019). Zoopla has also positively reviewed their predictions, with a 9% increase on expected completions in 2022.

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Takeaway

Higher cost of borrowing is expected to slow the pace of house purchasing, not stall it. House prices are expected to end the year higher than December 2021.

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Supply and Demand

Simple economics: we continue to have a historic shortage of properties on the market. Buyer demand hasn’t softened (although watch this space if we enter a recession)and supply has remained low. This has kept upward pressure on house prices.

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Where are we right now?

House prices fell in August broadly in line with summers over the past decade. Which highlights we are back to seasonality in the property market, after 2 years of Covid and lockdowns. Some properties will see price reductions this month with the desire to sell by Christmas.

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Long Term?

As every London estate agent will tell you: the average property value has doubled every decade since the second world war (remarkably, even allowing for Brexit and Covid, it has doubled since 2010). Nevertheless, short periods within each decade see stagnation or even reduction.

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Summary: putting your property on the market now could provide you the best opportunity to achieve the maximum value on your home. Winter is coming, and with it a potential recession, uncertainty and belt-tightening. Ask yourself: are you willing to wait 12-18 months for similarly strong market conditions for your home?

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And remember:

- Choose the Right Agent

- Make Your House For Sale in September

- Ensure a Top Quality Marketing Plan

- Speak With Your Agent Weekly

- Select the Best Buyer

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For more information, or a more detailed discussion, I’d be delighted to discuss

nick@huttonsandpartners.com

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