Book a Property Valuation
News October 29, 2021
     

Romford Homes Asking Prices Down 2%

With Rightmove announcing a national drop of 0.3% in average asking prices in August, some are asking if the steam has been let out of the property market. Yet with the gains we have seen in the last 12 months, is this just a minor bump in the road? Alarm bells normally ring when new homeowners coming to the market for the first time are having to lower their initial asking price when compared to the market as a whole. 

 

So, what is actually happening in the national and local property market to asking prices and the number of properties for sale, and where does that leave Romford homeowners and Romford landlords?

 

1 in 7.4 homes already on the market today have reduced

their asking price in the last two weeks

 

That means new sellers bringing their property to the market for the first time, are having to curtail their initial asking price to remain competitive. Normally, this should ring alarm bells, particularly when this is the first time this has happened in 2021. Therefore, it’s vital to ‘look under the bonnet’ of the figures and see what, exactly, is happening locally.

 

Average asking prices for Romford homes

are 2% down compared to July

 

However, that figure hides some interesting anomalies - the average asking price of Romford detached houses are 13% lower than in July (that doesn’t mean they have dropped in value by that much – just the headline asking prices) whilst apartments/flats have seen the average asking price rise by 2% in the last month.

 

So, if this is what is happening to Romford asking prices, what about the number of properties for sale. Looking nationally first…

 

There are currently just 285,970 properties for sale in the UK, which means 1 in 67 British homeowners are presently on the market – interesting when compared to 2005, it was 1 in 13.5 homeowners on the market.

 

With such little supply of properties for sale nationally, demand remains robust. Yet the property buyers in the market are being a little more reserved with the offers they are making compared to the Stamp Duty holiday frenzy times seen earlier in the year. They will pay handsomely, and yet top dollar won’t offer the ‘crazy price’ levels some Romford buyers were offering in the spring – hence the recent reduction in asking prices to a more realistic level.

 

Looking at the movement in the available properties for sale and to rent in Romford over the last few months, an interesting picture arises.

 

Number of Romford properties on the market

 

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Romford Properties for Sale

670

652

659

645

643

Romford Rental Properties Available

255

251

264

281

280

 

 

 

 

The number of Romford properties for sale (and rent) is still at record lows when compared to the 30-year long term average.

 

The choice for Romford tenants is limited as well, as many tenants aren’t moving home. With the additional increase in demand from 1 in 10 Romford homeowners choosing to go into rented accommodation (albeit temporarily) Romford landlords with exceptional properties are getting decent rents, as discussed in a recent article I wrote about the level of rents in Romford.

 

With the current level of Romford properties for sale being around 40% to 50% below the long-term average (depending on the type of Romford property you own), it means when a Romford property is properly priced, given the intense competition, often it comes down to the position of the buyer and not the price they are prepared to pay.

 

When I say, “position of the buyer”, I mean, do they have a chain, do they have to sell their own property to buy another property?

 

Many Romford house sellers are selling their home before they buy. Selling before you buy can be a fruitful approach in a fast-moving property market. That does mean your own purchaser will have to demonstrate a certain amount of patience whilst you wait for the right home to come on to the housing market. 

 

However, because it is currently taking on average 19 weeks between sale agreed and exchange of contracts, with mortgage providers and solicitors taking their time due to the backlog, this often allows you to potentially play catch-up if it takes a couple weeks to find the right property for you.

 

Many home sellers are going even further by selling their Romford home first and then going into transitional rented accommodation. This subsequently puts them in pole position when their forever home comes up for sale as they have no chain. Although this takes a lot of determination and resilience, it does mean you will be in the very best position when the property of your dreams comes up.

 

The choice they say, as always, is yours!

 

If you would like a chat about the Romford property market and the best thing for you and your personal circumstances, do drop me a line. In the meantime, what are your thoughts on the current Romford property market? Do share in the comments.

.

 

 

Romford House Prices - The Effect of Rising Inflation

With Romford Tenants Deposits Totalling £19,091.968. How Will 'Lifetime Deposits' Change the Rental Market

Is the Romford Property Market Running Out of Steam

Would you Re-Mortgage Your Romford Home to Help Your Child onto The Property Ladder?

All Agents Best Sales Branch of the Year 2020 Graphic

All Agents Best Lettings Branch of the Year 2020 Graphic

All Agents Best Lettings Branch of the Year 2020 Graphic

gbp_awards

Facebook Logo Twitter Logo   Youtube Logo   Instagram Logo   Linkedin Logo

Contact Us

35 Victoria Road
Romford
Essex
RM1 2LH

T: 01708 504455
E:
info@gbpestates.co.uk


2018 © GBP Estates. All rights reserved. Terms and Conditions | Privacy Policy | Cookie Policy
GBP Estates Limited. Registered in England.  Company No: 06672668
Registered Office Address: 35 Victoria Road, Romford, Essex, RM1 2LH.  VAT Registration No: 938 6295 75

About us

The GBP Group was created to provide solutions for all of your property needs with over 35 years combined experience, local and national knowledge, we are here to help you. From selling your family home, letting your investment property, choosing the right land for your residential or commercial development, dealing with a finance enquiry or day to day property management issues. Our experienced sales team helps purchasers, tenants, investors deal with any aspect of assisting their next move.

Built by The Guild of Property Professionals Logo

Please, enter your text here
Please, enter your text here
Please, enter your text here