Its a sellers market right now.

News at Trigghomes | 14/05/2021

Trigg & Co, leading Isle of Wight estate agents, say "It's a sellers market" right now.

A quick search by the sales hungry team at Trigg & Co on Rightmove this morning shows there are just 760 properties of all types for sale across the Isle of Wight - including those listed with more than one agent and beach huts, caravans and holiday chalets.  In a 'normal' market we would expect to see twice that number available.  Ticking the box to show properties that have been sold 'subject to contract' reveals 1,770 sales in progress many of which will be hoping to exchange and complete before Rishi Sunak's stamp duty holiday comes to an end.

Properties are selling immediately they come to the market.  You can only conclude one thing - the market is hot and it's a sellers market right now.

The latest data from the April edition of the Halifax house price index shows prices have increased by an average of 8.2% across the country in the last 12 months.  Monthly property transactions data for UK home sales from HMRC shows that completed sales increased in March 2021 to their highest ever level. UK seasonally adjusted residential transactions in March 2021 were 190,980 – up by 32.2% from February (up 49.6% on a non-seasonally adjusted basis). The latest quarterly transactions (January-March 2021) were approximately 31.2% higher than the preceding three months (October-December 2020). Year on year, transactions were 102.4% higher than March 2020 (107.9% higher on a non-seasonally adjusted basis).

This 8.2% average rise disguises some stark regional variations.  The pandemic has put a rocket under the desirability of homes with generous outdoor space, in pleasant rural surroundings and especially by the coast.  City centres have seen price stagnation or even declines.

Rightmove reported that almost one in four properties that went sale agreed in March had been on the market for less than a week.  This was the strogest sales rate that they have ever recorded.  Two- and three-bedroom semi-detached houses are being snapped up quickest, with 30 per cent of those marked as sold by agents having been on the market under a week.

Rightmove's comment on this latest data was as follows:
"If you’re looking to buy in the current frenetic market then you need to be on your toes and ready to move more quickly than ever before.”

For Island sellers, Trigg & Co believe this means a few things:

  1. If you want to move this year you need to get your own house on the market and under offer.  This puts you in a strong position to offer and secure your onward purchase.  Sellers are spolit for choice and don't need to sell to people who haven't even got their own property on the market yet.
  2. We are achieving great prices for our vendor clients, with some properties going to 'best and final bids' and selling for more than the asking price.  So, espcially if you are not moving on, this could be a great time to sell.
  3. The current stamp duty holiday has very little impact on first time buyers, and for a typical second time mover buyer at the current average Island house price of £287,198, the stamp duty  saving is a maximum of £4359.  That is probably not the deciding factor on whether or not to move.
  4. Which leads us to believe that the current market conditions will persist for a while yet.  We don't see prices falling over the summer.

If you would like a FREE no obligation valuation from Trigg & Co, the Island experts, please give us a call.  We are here to help 7 days a week.