How is the Southend property market right now?
Did you know that 12 out of 13 homeowners benefitted from the value of their home rising in 2022. Has the value of your home risen?
The Current Southend-on-Sea Market
Looking at current market conditions and predictions for 2023, are properties still in the same amount of demand as Spring/Summer last year…?
Unfortunately not – our local Southend-on-Sea research shows that there are more available properties to purchase, and properties are taking longer to go ‘under offer’ on average.
However, has the start of 2023 showed us any signs of a ‘market crash’…?
Certainly not – In fact, the data we have recorded in 2023 shows that although properties are taking longer to sell on average, the amount of online daily views per property has been steadily increasing since early December, and there is a consistently healthy number of sales being agreed each week.
This shows that demand is still present but buyers are potentially more hesitant, possibly because of the increased mortgage rates compared to what we have been used to over the last few years.
Andrew Wishart, a property economist at Capital Economics, said average quoted mortgage rates had climbed from 1.4% at the end of 2021 to a peak of 5.7% in November last year.
While the effects of Kwasi Kwarteng’s budget had worn off slightly, mortgage rates were still likely to be just above 4.5% by the end of the year.
From 1995 until 2022, the average mortgage interest rate in the UK averaged 5.62%.
Interest rates have increased compared to the unusually low rates we have all been used to over the past 2/3 years, but looking at the bigger picture, they are still lower than average over the last 25-ish years.
What About Local House Prices?
For Southend & Thorpe Bay homeowners, it’s good news. Property prices have grown yet again according to Land Registry data. In the Southend-on-Sea area ( SS1 & SS2 ), the average purchase price in January 2023 is £314,278, which is up from £306,844 on the previous year, a rise of 2.4%.
It’s worth noting that the property transactions which are completing in January, will have been sales typically agreed 4-6 months ago.
Since January 2020 alone, Southend property prices have increased by 11.8%. If you are selling in 2023, it’s likely you will benefit from considerable positive equity.
For home sellers, it’s imperative that your estate agent is using every marketing tool available to increase your chances of a sale.
The market I feel is currently stronger than most people anticipated, however, if you are a seller, please note that every home being marketed (no matter how unique the property is) is being marketed in competition with other properties in a similar area and in a similar price bracket. Therefore, it is vital that your listing stands out amongst the rest.
Conveyancing is taking longer than usual within our market at the moment, and on average from the point of accepting an offer it is taking approximately 16-18 weeks to complete. Therefore, if you accept an offer on your property today, we are likely to be in the summer before you are moving home.
To talk about how Weavers’ unique strategies can help you achieve the maximum possible price for your home, get in touch today.